Soybeans fall on renewed US-China trade tensions

• Corn and wheat also fall on heightened trade tensions
• Demand closely monitored as lockdowns begin to be lifted
• Much of Europe shut for Labour Day holiday

LONDON: US soybean futures were lower on Friday while corn and wheat also weakened on renewed concern about trade tensions between the United States and China.

US President Donald Trump said on Thursday his hard-fought trade deal with China was now of secondary importance to the coronavirus pandemic. He threatened new tariffs on Beijing, as his administration crafted retaliatory measures over the outbreak.

China is the world's largest importer of soybeans.

"There have been some Chinese purchases but there is also heightened US-China tensions," said Phin Ziebell, agribusiness economist at National Australia Bank.

Chinese state-owned importers bought at least five bulk cargoes of US soybeans on Thursday, or at least 300,000 tonnes, for shipment mostly from the US Gulf Coast, two traders with knowledge of the deals said.

The most-active soybean futures on the Chicago Board of Trade were down 0.7% at $8.49-1/2 a bushel by 1111 GMT, having closed up 2.1% in the previous session.

Corn prices were also lower, with the market also weighed by a decline in industrial demand as lockdowns across the globe depress demand for corn-derived biofuel ethanol.

The International Grains Council on Thursday cut its forecast for global corn consumption in the current 2019/2020 season by 6 million tonnes to 1.145 billion tonnes, citing a slowdown in demand for ethanol processing.

"Traders continue to monitor weather forecasts around the globe as well as demand signals in a world trying to reopen from the coronavirus shutdown," brokerage Allendale said in a note.

The most-active Chicago corn futures declined 0.9% to $3.17-1/4 a bushel after closing up 1.7% on Thursday.

Chicago wheat futures were also lower. Paris-based Euronext was closed, along with much of Europe, for the Labour Day public holidays.

The most active Chicago wheat contract was down 1.2% at $5.18 a bushel.