# The market that thinks it sees US-China trade progress

> Citigroup analysts say the spread between US Gulf soybean export prices and Brazilian port prices has narrowed from a 24% discount in mid-October to 17% recently. They read this as market optimism about a possible Trump-Xi trade deal at the G20 meeting. The 25% Chinese tariff on US soybeans remains in place.

- Date: 2018-11-14 · published 2018-11-14T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/62095-the-market-that-thinks-it-sees-us-china-trade-progress
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A narrowing US-Brazil basis suggests traders are pricing in possible tariff relief, which could lift US soybean prices if a deal materializes, but the signal is speculative until talks produce results.

## Read by commodity

- SOY: bullish ▲
- USDBRL: neutral

## Sources

- cnbc.com: https://www.cnbc.com/2018/11/14/the-market-that-thinks-it-sees-us-china-trade-progress.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.