At 5h07 on 02/01/2020 (Vietnam time), the price of wheat, maize and soybean in the United States had a sharp increase year after the US-China trade agreement may initially boost export of agricultural products to support prices. increase.
Prices for cereals changed slightly as markets waited for more information on this month's agreement between Washington and Beijing.
US President Donald Trump said the trade deal “phase 1” will be signed on January 15, 2020 at the White House and then he will go to Beijing to start negotiations on the next phase.
Phase 1 includes Beijing will purchase additional US agricultural products, although details have not been announced.
China is the world's largest soybean importer, and the deal has helped recover soybean prices from a 10-year low in May 2019, fearing demand could be affected by trade disputes. . Traders are still waiting for US sales to come to China. Total U.S. corn sales face many obstacles in 2019, amid a plentiful global supply.
March soybean futures on Chicago floor increased 3 US cents to US $ 9.55-1 / 2 / bushel, the highest in 18 months. For the whole year of 2019, soybean prices increased 6.8%.
Wheat futures prices in March 2020 on Chicago floor increased 2-3 / 4 US cents to 5.58-3 / 4 USD / bushel, lower than the 16-month peak (5.64-1 / 2 USD / bushel) on December 30, 2019. For the whole 2019, wheat prices increased by 11%.
Corn price in March 2020 on Chicago floor dropped by half US cent to 3.87-3 / 4 USD / bushel. For the whole 2019, the price of corn increased by 3.4%.
American farmers are affected by adverse weather in 2019, along with the US-China trade war. Corn futures rose to a five-year high after historic rains and floods delayed planting in spring crops, before falling due to weak demand.
The planned deal between the United States and China has boosted the outlook for grain demand, while fears of declining harvest yields have supported grain prices.
Source: VITIC / Reuters
