China crop futures tumble as Biden election spurs import hopes

Chinese crop futures retreated for a second day after Joe Biden’s election as the new U.S. president spurred expectations of more farm imports from America under a bilateral trade deal to meet domestic needs. Corn prices fell to the lowest in more than five weeks.

China will probably push the trade deal forward, leading to higher imports of corn and soybeans due to expectations of improved relations under a new president, according to Tian Yaxiong, an analyst with China Futures Co. in Chengdu. Corn imports could surge to 20 million tons, Tian added. Food soybeans posted their biggest loss in more than two weeks, while soybean meal dropped as much as 2%.

China’s official reaction to Biden’s victory has been muted, with no public congratulations from President Xi Jinping. State-run media such as the China Daily expressed hope that relations could be “reset for the better,” while the Global Times called on Beijing to communicate with the Biden team “as thoroughly as it can” to bring relations to a state of “great predictability.”

In Chicago, soybeans held above $11 a bushel and near their highest since 2016, as traders assessed demand from China and the crop outlook in South America where dry weather has delayed plantings. Corn and wheat eased.

Investors are also counting down to the supply-and-demand report from the U.S. Department of Agriculture on Tuesday. A Bloomberg survey of analysts shows the USDA will probably trim its outlook for corn and soy inventories.