Trump and Xi agree trade truce

Market is very concerned about the outcome of further negotiations

Soybeans prices are moving sharply this morning, on relief that Washington and Beijing have backed away from a deeper trade war.
Trump’s claim that China will “immediately” start buying more US products has driven soybean prices up by 3% on the Chicago futures market.
However, they’ve dropped in China — as traders anticipate a surge in supplies from America’s farmers.
“The price spike in Chicago soybeans and the fall in Dalian is a normal market reaction to the U.S.-China trade truce because China has agreed to start buying agricultural products from American farmers immediately,” said Monica Tu, an analyst at researcher Shanghai JC Intelligence Co.
Still, “the market is very concerned about the outcome of further negotiations,” and whether there will be big purchases in the next few weeks, she said.
http://www.theguardian.com

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