Traders are cautiously optimistic some type of trade deal with China will be worked out. Standard Grain President Joe Vaclavik says there is evidence something is expected to happen. “Since the onset of the trade war in July, Brazilian beans had been running 25 percent above U.S. beans on the export market, due to the tariffs. In the last five days, we’ve seen the premium drop to 12 percent,” says Vaclavik. “They removed more than half of the premium. That’s an indication the Brazilian soybean exporter is concerned there will be a trade deal.” Vaclavik says it will still be difficult to catch up on the lost soybean sales. “That’s the unknown right now.”
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