Chicago Board of Trade soyabean futures rallied more than 2 percent on Monday after the United States and China agreed to drop tariff threats as they work on a wider trade agreement, traders said. US Treasury Secretary Steven Mnuchin said on Sunday that the US trade war with China is "on hold" and President Donald Trump said China had pledged to buy "massive amounts" of American agricultural products.
CBOT July soyabeans settled up 26-3/4 cents, or 2.7 percent, at $10.25-1/4 a bushel. For a most actively traded contract, it was the steepest rally since mid-October. The US Department of Agriculture is due to report planting progress later on Monday. Analysts polled by Reuters on average expect 54 percent of the crop to have been seeded as of Sunday.
The USDA said 893,680 tonnes of US soyabeans were inspected for export last week, above the range of trade estimates. Brazilian truck drivers blocked soyabean roadways around the capital of the country's largest grain state to protest increases in domestic fuel prices.