Chicago soyabean and corn futures slid on Monday as rising tensions between Washington and Beijing raised concern about further demand risk, on top of coronavirus disruptions to biofuel and livestock feed markets.
Favorable crop weather also weighed on prices as planting advanced in the US Midwest while rain across Europe looks set to reach Russia's crucial southern export zone this week, pressuring US wheat markets.
Equities and oil prices fell on Monday as a US-China spat over the coronavirus outbreak fueled fears of a new trade war, only months after the world's two largest economies signed an agreement to defuse a tariff battle. The most active soyabean contract on the Chicago Board of Trade was down 17-1/4 cents at $8.32-1/4 a bushel by 11:00 a.m. (1635 GMT).
Corn fell 4-3/4 cents to $3.13-3/4 a bushel, trading near a 10-1/2 year low of $3.09 struck two weeks ago.
CBOT wheat shed 1-3/4 cents to $5.14-3/4 a bushel after setting a six-week low of $5.05-3/4 as it approached the psychological $5 threshold.
US President Donald Trump said on Thursday the Phase 1 trade deal with China was now of secondary importance to the coronavirus pandemic and threatened new tariffs over the outbreak. Agriculture was a key part of the trade pact signed in January, raising hopes that China, the world's biggest soyabean importer, would ramp up purchases of US supplies.
The coronavirus pandemic has already dented grain prices by shredding demand for corn-based ethanol biofuel and threatening to curb consumption of livestock feed after the closure of some meat factories.
Meanwhile, fair weather across the US Midwest has analysts predicting planting ahead of schedule.
Rain relief in Europe added pressure to US wheat futures, though long-term dryness across the continent and into the Black Sea limited downward pressure. Concerns about underlying dryness in parts of the US Southern plains may also be supporting the market.
Comments
Comments are closed for this article.