BEIJING/HAMBURG: Chicago soybean futures fell on Monday, weighed down by ample global supplies and lingering doubts over whether top buyer China will buy 12 million metric tons of US soybeans by the end of 2025 as forecast by senior US officials.
Chicago Board of Trade most-active soybean fell 0.1 percent to USD11.35-3/4 a bushel at 1232 GMT. Wheat fell 0.5 percent to USD5.35-3/4 a bushel amid abundant global supplies and slack demand. Corn lost 0.4percent to USD4.45-3/4 a bushel, pulling back on profit-taking after strong US export demand pushed prices on Friday to their highest level since early June.
“There have been some Chinese sales of US soybeans but they are disappointing compared to the big total expected,” one German trader said. “The market is waiting for evidence of larger Chinese purchases to support upward momentum.”
China started buying US soybeans, wheat and sorghum after the US/China trade truce in October. The US government has confirmed over 2 million tons of soybean sales since October 30. However, the slow buying pace has raised fears that China could fall well short of the US cabinet members’ forecast of 12 million tons of Chinese purchases of US soybeans by the end of this year, a target that Beijing has not confirmed.
Competition to US soybeans and wheat in export markets is expanding with large southern hemisphere crops forecast. Consultancy Agroconsult has forecast a record-large Brazilian soybean crop. Argentina’s wheat harvest is expected to reach a record 25.5 million tons, up from a previous estimate of 24 million tons, thanks to higher-than-expected yields as harvesting progresses.
Australia is also poised to raise its wheat, barley and canola production estimates this week, supported by welcome rain and some stronger yields.
Traders noted slack global demand with hardly any international wheat purchase tenders issued.
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