China resumed buying USA soybeans, bringing some relief to farmers in Donald Trump's heartland as President Xi Jinping works toward a trade deal with his American counterpart.
Traders said China made the first major purchase of U.S. soyabeans since Washington and Beijing agreed to a temporary trade truce this month.
Trump's tweet came shortly after he agreed with Xi to a truce in the trade war during a meeting at the Group of 20 summit in Argentina. A second trader with direct knowledge of the deals said Chinese state-owned firms bought at least 12 cargoes for shipment between January and March.
The companies did not immediately respond to requests for comment.
Meng was arrested December 1 in Vancouver on USA charges related to possible violations of trade sanctions on Iran.
Senior Chinese and U.S. negotiators have held telephone talks to discuss the road map for the next stage of their trade discussions, according to China's government.
Stock markets aroused on Wednesday as U.S. President Donald Trump sounded energetic about an economic agreement with China, while sterling rose off multi month lows as Prime Minister Theresa May promised to battle a test to her initiative.
"It looks like we're back in business now", the second USA trader said.
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Chicago Board of Trade soybean futures edged higher on Tuesday on hopes that new deals would be signed soon, but there were no signs of increased activity in the cash markets, traders said.
Through its daily reporting system, the USDA said private exporters sold 1,130,000 tonnes of USA soybeans to China for delivery in the 2018/19 marketing year that began September 1.
This is the first significant purchase since the two countries began imposing tit-for-tat tariffs, with China slapping a 25 percent retaliatory levy on the American oilseed after Trump imposed duties on billions of dollars worth of goods from the Asian country.
USA farmers stored soybeans after the fall harvest, instead of selling them to grain traders and processors, because of low prices and lack of alternative buyers.
Daimler, which said the tariffs were the key reason for a profit warning in June, gained 2.7 percent. "We need follow-up sales in short order in order to keep the momentum higher in soybeans".
The purchases represent a major gesture by China toward easing tensions between the world's two largest economies.
The trade war has taken a toll on vehicle companies that manufacture in the U.S., with the makers of Mercedes-Benz and BMW both warning of lower profits this year as tariffs forced them to hike prices in China.
In retaliation, China raised the duty on United States vehicle imports to 40%, though it proceeded with the lower rate on imports from other countries. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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