China’s most actively traded soymeal futures fell by the maximum 5% after a phone call between US President Donald Trump and Chinese President Xi Jinping.
According to Reuters, soy traded on the Dalian Commodity Exchange fell to 3,105 yuan ($ 447.99) a tonne on Friday November 2nd. This is the biggest daily drop in almost 6 years.
The price decrease was a direct result of the fact that Trump and Xi both expressed optimism late Thursday about resolving a bitter trade dispute, with Trump saying on Twitter that trade discussions with China were “moving along nicely,” and that he planned to meet with Xi on the sidelines of the G20 leaders summit.
Standstill of US soybeans
The festering trade dispute between China and the United States has brought purchases of US soybeans by China to a virtual standstill, tightening supplies of the beans used to make soymeal and driving up prices.