Last week, a one-year U.S.-China trade truce and improved diplomacy boosted grain futures markets. Soybeans hit a 13-month high, corn futures rose, and wheat prices went up significantly.

China purchased at least four U.S. soybean cargoes after the Trump-Xi summit, totaling around 250,000 tons. China aims to buy 12 million tons of U.S. soybeans this year, with sales increasing to 25 million tons annually. There are doubts about China fulfilling this commitment due to price competitiveness with Brazil.

China is now looking to purchase U.S. wheat for the first time in over a year, seeking cargoes loading from December to February. China will suspend all levies on U.S. agricultural products announced since March 4 as part of the trade truce.

Technical indicators show bullish trends in soybean, soybean meal, and wheat futures markets. Corrective selling pressure may occur this week. Spreaders are buying meal and selling soybean oil, while corn futures show a near-term bullish stance.

The U.S. dollar index is trending higher, affecting grain futures as most are priced in USD. Weather in Brazil and Argentina will be crucial for soybean, corn, and wheat traders in the upcoming months. Expectations are for a large Brazilian soybean crop this year.

Read more at Yahoo Finance: Grain Bulls Are Back in Business as China Resumes Soybean, Wheat Purchases. What Comes Next?