The price gap between U.S. and Brazilian soybeans is narrowing, a signal some suggest that trade progress could be made between the U.S. and China.

CNBC reports narrowing U.S.-Brazil soybean price differentials imply greater market optimism regarding a meeting between President Trump and China’s President at the upcoming G20 Summit

Even with the 25 percent tariff on U.S. soybeans, the average differentials have shifted from a 24 percent U.S. discount to Brazil in mid-October, to a 17 percent discount last week and a 13-15 percent discount this week. Market experts say the differential could partly account for any movement of U.S. beans to South America for local crushing or even re-export.

The G20 Summit, where President Trump and his counterpart from China are expected to discuss trade on the sidelines, begins November 30th.

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