Ample supply pushes soybeans below $10 a bushel

CANBERRA: Chicago soybean futures fell on Monday below $10 a bushel for the first time in three months, as favourable weather bolstered expectations for a large U.S. harvest and a rise in inventories.

Corn and wheat futures edged lower, with global markets rattled by U.S. President Donald Trump ramping up tariff threats.

The most active soybean contract on the Chicago Board of Trade (CBOT) fell to $9.98-1/4 a bushel, its lowest since April 9, in early trading. However, it had recovered to $10.07-3/4 by 0336 GMT, up 0.1%.

CBOT corn lost 0.2% to $4.11-1/4 a bushel and wheat eased 0.1% to $5.44-3/4 a bushel.

On Friday, the U.S. Department of Agriculture (USDA) projected U.S. ending stocks for 2025-26 at 310 million bushels, up from its previous estimate of 295 million bushels and above analysts’ expectation of 302 million bushels.

The USDA trimmed the outlook for U.S. soybean production to 4.335 billion bushels from 4.340 billion bushels, but traders believe yields will rise if weather conditions remain favourable.

China June soybean imports hit record high on strong Brazil shipments

A large U.S. harvest would follow a bumper crop in rival exporter Brazil.

“The South American harvest is coming to market and there don’t seem to be any significant issues in the U.S. with their crop,” said Dennis Voznesenski, an analyst at Commonwealth Bank in Sydney.

“Soybean stocks around the world are heading to record levels globally and right now there don’t seem to be any issues on the horizon.”

Consultants Safras & Mercado predicted Brazil would plant a larger area with soybeans in September, leading to record production in the 2025-26 season.

The increased use of soyoil to make biofuel is supporting soybeans. The USDA said fuel makers would consume more than half of all soybean oil produced in the United States next year as federal policy transforms the sector.

However, speculators are betting CBOT soybean prices will fall.