CHICAGO: US soybean futures slid to fresh lows on Friday and were on pace for weekly losses of more than 6 percent after a US government report reinforced concerns that trade conflict with China will dent exports and lead to a build-up in stocks.
Corn futures followed soybeans lower, with additional pressure from a favorable weather forecast for much of the US Midwest crop.
Wheat, however, jumped for a second straight day as crop production shortfalls in the EU and Black Sea region stoked concerns about tightening global stocks.
Trade tensions between the United States and China remained a drag on soybeans a day after the US Department of Agriculture slashed its 2018/19 season US export forecast by 250 million bushels and projected end-of-season stocks at the highest on record.
China raised tariffs on US soybeans a week ago in retaliation for US tariffs on Chinese goods.
Moves by China to shift to other soybean suppliers and alternative feeds, along with expanded soy production in Brazil, could limit long term US soy demand by the world's largest importer of the oilseed, traders said.
"There's legitimate concerns that we could lose China as a soybean buyer," said Karl Setzer, analyst with MaxYield Cooperative.
China's soybean imports in June jumped 13.1 percent from a year ago as buyers scooped up Brazilian supplies to avoid potentially higher costs on US shipments.
China on Thursday cut its import forecast and warned that the trade war would curb demand as farmers switch to alternative animal feed ingredients.
Meanwhile, Brazil is expected to expand soybean plantings to a record high next season, agricultural consultancy Safras & Mercado said on Friday.
Chicago Board of Trade August soybeans were down 14-1/2 cents at $8.18-1/4 a bushel by 11:53 a.m. CDT (1653 GMT), while new-crop November fell 14-3/4 cents to $8.34-3/4. August through January 2020 all posted contract lows on Friday.
Corn was pressured by forecasts for rain and milder temperatures in the Midwest following above-normal heat over the weekend. Much of the crop is entering pollination, a stage of development when stressful weather can hurt yields.
CBOT September corn was 5 cents lower at $3.40-3/4 a bushel and new-crop December was down 5-1/4 cents at $3.54.
Wheat prices were higher after the USDA raised its outlook for US wheat exports and lowered production forecasts for rivals Russia and the European Union.
CBOT September wheat rose 8-1/2 cents to $4.93 a bushel.
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