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Soy Heads for Best Month Since 2016 on China Demand Optimism

  • China’s Liu to lead trade delegation to Washington this week
  • December rally marks turnaround after a tough 2019 for farmers
Soybeans are unloaded from a semi truck during harvest at a farm in Wyanet, Illinois.

Soybeans are unloaded from a semi truck during harvest at a farm in Wyanet, Illinois.

Photographer: Daniel Acker/Bloomberg
Updated on

The year is ending on a high note for American soybean farmers, with prices on pace for their best monthly performance since 2016.

Futures in Chicago jumped on the news that Chinese Vice-Premier Liu He is set to lead a delegation to Washington this Saturday, and is likely to sign the first phase of a trade deal with the U.S. That accord includes a pledge by China to increase purchases of American farm goods, with President Donald Trump pegging the amount at as much as $50 billion. Buying anywhere close to that level would bring a significant demand boost to exports of soybeans, pork and other commodities.