BEIJING: Chicago soybean and corn futures fell on Tuesday, pressured by expectations of large US harvests amid benign weather across the Midwest.
The most-active soybean contract on the Chicago Board of Trade (CBOT) slipped 0.25% to $10.09 per bushel by 0444 GMT, heading for a third consecutive session of losses. Corn fell 0.13% to $3.93 a bushel. Forecasts for cooler weather and timely rains this week in the US crop belt reinforced expectations for bumper yields, pressuring corn and soybean futures.
Wheat edged down 0.05% to $5.38 a bushel, pressured by winter wheat harvest in the Northern Hemisphere. On trade, top US and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes at the centre of a trade war between the world’s top two economies, seeking to extend a truce by three months.
“US Midwest weather, export flows and forthcoming details on tariff rates and ongoing trade discussions – notably with China – remain upside risk catalysts,” analysts at J.P. Morgan said in a note on Tuesday.
The US Department of Agriculture’s key August WASDE report is due in two weeks and is expected to provide further guidance on US crop yields. In Argentina, exports of soybeans and their byproducts are set to resume once the government formalises a tax cut.
Argentina is the world’s largest supplier of soymeal and soyoil. Commodity funds were net sellers of CBOT corn, soybean, soymeal and soyoil futures contracts on Monday and net buyers of wheat futures, traders said.
Comments
Comments are closed for this article.