TOP STORIES:

Soybean Futures Jump as China Suspends Tariff Threat

Soybean futures rose after the U.S. and China suspended plans to levy tit-for-tat tariffs on goods including American crop exports.

China's recent plan to impose duties on soybeans and other U.S. crops pressured prices as traders bet exporters could lose access to their most important market, with the mere threat of tariffs dampening demand. President Donald Trump on Monday said China would buy more agricultural products as a result of this week's detente.

Can the U.S. Sell More Farm Goods to China? -- Market Talk

11:19 ET - Treasury Secretary Steven Mnuchin says the U.S. expects China to buy as much as 40% more agricultural products in the near future, part of a deal to avoid widespread tit-for-tat tariffs. But market participants ask how much more China can really buy. U.S. soybean exports, for example, have dropped off as a recent record harvest in Brazil allows Chinese merchants to source cheaper grain in South America. A deal won't offset those seasonal market forces. The pork trade, meanwhile, has already been hampered by tariffs. "With the exception of corn, beef, and pork where U.S. trade to China is low in absolute terms," says Ken Morrison of Morrison on the Markets, "it's unrealistic to suggest U.S. ag trade will be up substantially this year." (benjamin.parkin@wsj.com; @b_parkyn)

STORIES OF INTEREST:

Oil Rises as Venezuela Election Puts Supply at Risk

Oil prices rose Monday, with the U.S. benchmark hitting a fresh 3 1/2-year high as investors weighed further crude supply disruptions in Venezuela and Iran.

U.S. crude futures rose 96 cents, or 1.35%, to $72.24 a barrel on the New York Mercantile Exchange, their highest since November 2014. Brent, the global benchmark, rose 71 cents, or 0.9%, to $79.22 a barrel on ICE Futures Europe.

Treasury Secretary Says U.S., China Have Suspended Tariffs

The U.S. suspended its threat to impose tariffs on $150 billion in Chinese imports to the U.S. while negotiations with China continue, but President Donald Trump could impose the tariffs if a deal between the two countries doesn't progress, Treasury Secretary Steven Mnuchin said.

"Both parties have agreed to suspend the tariffs," Mr. Mnuchin said Monday in an interview on CNBC, echoing remarks he gave over the weekend. He specified that the U.S. was pausing its efforts to apply tariffs to $150 billion in Chinese imports to the U.S., and that China would hold its threat to retaliate with tariffs on $50 billion in U.S. goods.

THE MARKETS:

Livestock Futures Mixed; China Leaves Pork Tariffs Untouched

Livestock futures started the week mixed as traders parsed cooling trade tensions between the U.S. and China.

Live cattle futures for June delivery rose 2.5% to $1.04925 a pound at the Chicago Mercantile Exchange, approaching their upper limit for the day. June lean hog contracts fell 0.9% to 74 cents a pound.

(END) Dow Jones Newswires

May 21, 2018 17:30 ET (21:30 GMT)