Soybean futures are rebounding from their one-month lows on the first trading day back from the Memorial Day long weekend. Soybean prices are surging after China purchased more US soybeans for the 2019-2020 and 2020-2021 marketing seasons, a trend that might diminish recent tensions between the world’s two largest economies. Despite becoming a COVID-19 hotspot, Brazil continues to export record amounts of the agricultural commodity. Is the soybean market beginning to pare this year’s losses?

July soybean futures soared $0.135, or 1.62%, to $8.47 per million British thermal units (btu) at 17:05 GMT on Tuesday on the Chicago Board of Trade (CBoT). Although soybean prices have plunged more than 11% year-to-date, they have slightly rebounded 1.2% in May. Over the last 12 months, the crop is up 2%.

According to the US Department of Agriculture (USDA), private exporters confirmed sales of 264,000 metric tons of soybeans for delivery to China. The government reported that 66,000 metric tons are set for delivery during the current marketing year and 198,000 metric tons are for delivery next year.

Export sales of 216,000 metric tons of soybean for delivery to unknown destinations were also reported to the USDA.

The agricultural market had been waiting for more Chinese purchases, but there was some skepticism because of renewed US-China tensions regarding trade and Hong Kong. The White House warned that it would slap sanctions on China if it moved ahead with national security laws that bypass Hong Kong’s legislature and effectively outlaws large-scale demonstrations.

Commerzbank wrote in a research note that investors could be taking advantage of the lowest prices since late last month.

Some market participants are likely to have been prompted to enter the market by the one-month low below 830 U.S. cents per bushel.

Meanwhile, Brazil’s foreign trade department announced that soybean exports increased by 33% to 12.24 million metric tons in the first three weeks of May. If the trend continues, shipments could top 14.3 million metric tons this month, rising 40% year-on-year. The South American country’s crop has been attractive due to the Brazilian real being the worst-performing currency, sliding more than 40% YTD.

In other commodity markets, July corn futures added $0.025, or 0.79%, to $3.205 per pound. July wheat futures edged up $0.0125, or 0.25%, to $5.10 a bushel. July orange juice futures picked up $0.02, or 1.58%, to $1.288 per pound.