Overview

• President Trump said boosting U.S. soybean orders would alleviate China’s domestic shortage and narrow the bilateral trade deficit.
• Chicago Board of Trade soybean futures jumped over 2% following his appeal on Truth Social.
• Under the 2020 Phase One deal, China agreed to boost purchases of U.S. agricultural products but ultimately fell short of its targets.
• Last year China imported about 105 million metric tons of soybeans, sourcing just under a quarter from the U.S. and the rest mainly from Brazil.
• The U.S.–China tariff truce will expire on August 12 and officials have not clarified whether increased soybean purchases are tied to extending the agreement.