Soybean futures rallied almost 29 cents on Tuesday on reports that China and the U.S. may resume talks. This occurred just ahead of the end of the comment period on an additional $16 billion in U.S. tariffs on Chinese goods. U.S. Treasury Secretary Mnuchin expressed willingness to talk to China—if the Chinese government is open to “meaningful changes to their trade and technology transfer policies.” Other grains also rallied in sympathy with soybeans, with corn and wheat closing up around 5 and 8 cents, respectively.
The U.S. administration is turning up the pressure further, teasing another possible round of tariffs, not at the earlier level of 10 percent but at 25 percent.
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