
Core Insights - Soybean-related stocks surged significantly following President Trump's comments regarding trade tensions with China, particularly affecting small-cap oilseed and agricultural biotech stocks [1][2]. Trade Tensions - Trump accused China of an "Economically Hostile Act" for not purchasing U.S. soybeans, which he claimed was harming American soybean farmers [2]. - He suggested the U.S. might terminate business with China related to cooking oil and other trade elements, asserting that the U.S. could produce cooking oil independently [2]. Soybean Short Squeeze - Australian Oilseeds Holdings Limited (NASDAQ:COOT) experienced a dramatic increase of nearly 350% in stock price due to the short squeeze triggered by Trump's remarks [3]. - The stock had previously faced pressure from trade tensions and compliance issues, but the combination of high short interest and Trump's comments created ideal conditions for a short squeeze [3]. Stock Performance - Origin Agritech Limited (NASDAQ:SEED) saw a 63% increase, while Arcadia Biosciences, Inc. (NASDAQ:RKDA) rose by 46% in early trading on the same day [4]. - The rally in soybean-related stocks exemplified a textbook short squeeze, where low-priced stocks with significant short interest surged due to news, forcing short sellers to buy back shares at higher prices [4].