Soybeans rebound from five-week trough, dollar steamrolls higher

Soybean futures rose over one percent in American trade off November 28 lows, while the dollar index climbed from October 22 lows. 

That comes after earlier developments from China, the world's largest soybean consumer and importer, and the US, the world's top producer and exporter, and after reports the product in Brazil could be negatively impacted by dry weather. 

As of 07:37 GMT, soybean futures due in March rose 1.31% to $9.075 away from five-week lows at $8.9425, while the dollar index rose 0.77% to 96.89, marking December 26 highs. 

Chinese President Xi Jinping noted in earlier remarks how his country made over a 100 reformative measures in 2018, with the world witnessing an economic opening for foreign investment.  

Jinping avoided the subject of the ongoing US-China trade dispute, especially after an agreement with President Donald Trump to put off planned US hikes on Chinese products until negotiations settle. 

It was a truce reached at the G20 Summit in Argentine last month in hopes of putting down the fire of a trade war between the two largest economies in the world. 

Some Chinese reports indicated the People's Central Bank might cut growth forecasts for the last quarter of 2018 to below 6.5%, with Chinese companies facing many challenges such as slower growth and US tariffs. 

Earlier US data showed the Marki manufacturing PMI down to 53.8 in the final reading from 53.9 in the preliminary one, below November's 55.3 reading, while a US partial government shutdown has entered its second week as President Donald Trump and the Democratic Party fail to reach a compromise on funding for the border wall with Mexico. 

President Trump has expressed readiness to make a deal with Democrat to end the shutdown, but he asserted he won't budge on the border issue. 

More pertinently, Trump noted last month that China will be buying "huge amounts" of US soybeans following his meeting with Chinese President Xi Jinping in Argentine, adding China has returned to market in regard to US grain products. 

Recent reports indicated China plans to buy the first patch of US soybean since the trade war in June to fulfill its part of the deal with President Trump and as negotiations go through for the first three months in 2019.