US soybeans on track for weekly gain on weather woes, China demand optimism

BEIJING: Chicago soybean futures came under pressure on Friday from weaker crude oil and a firmer dollar, but remained on course for a second weekly gain as hot U.S. weather raised crop concerns and traders watched for signs of renewed Chinese demand.

Corn and wheat were both headed for weekly declines.

FUNDAMENTALS

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.32% at $11.53-1/4 a bushel, as of 0149 GMT, while corn edged 0.12% lower to $4.14-1/4 a bushel. Wheat lost 0.71% to $5.97-1/4 a bushel.

Weaker crude oil prices continued to weigh on soybeans and corn, with both crops used as feedstocks in biofuels.

A stronger dollar added pressure to grain and oilseed markets by making U.S. supplies less competitive for overseas buyers.

The National Weather Service forecast temperatures nearing 100 degrees Fahrenheit this weekend, reaching as far north as the upper Midwest and as far east as the Carolinas. The above-normal temperatures are expected to stretch from the Plains to the Atlantic Coast through July 4.

Brazil’s Agroconsult on Thursday raised its estimate for the country’s 2025/26 key second-corn crop by 3.4%, though the forecast remained below the previous season’s record harvest after adverse weather curbed potential.

The European Commission cut its forecast on Thursday for usable production of common wheat, or soft wheat, in the European Union in 2026/27 to 126.3 million metric tons from 126.9 million a month ago.

Commodity funds were net buyers of CBOT corn, soy and wheat futures, traders said on Thursday.

Global stocks rose on Thursday as strong earnings from chipmakers lifted sentiment, although investors remained wary about stretched valuations for AI-related shares, while the dollar hovered near a one-year high.