It looks like it is going to be an especially happy new year for soybean farmers as soybean prices are tracking towards their best monthly performance since 2016.
According to Bloomberg, futures in Chicago jumped on the news that Chinese Vice-Premier Liu He is set to lead a delegation to Washington this Saturday to sign the first phase of a trade deal with the U.S. The trade deal would bring a significant demand boost to exports of soybeans, pork, and other commodities.
The December rally for soy is much needed after this year brought bouts of weather that impacted both planting and harvesting, all while a trade war was occurring that reduced demand. Soy futures jumped nearly a full percentage point on Monday, bringing this month’s gain to just over 8%. That gain would be the biggest advance for a most-active contract since April of 2016.