SINGAPORE: Chicago soybeans slid for a third consecutive session on Tuesday, with prices dropping to their lowest in almost one week amid ample Brazilian supplies and worries over demand in top importer China.
Wheat and corn also fell, weighed down by a broad-based decline in stock markets. “In the physical market, there are plenty of soybeans in South America, which will give competition to US beans,” said one grains trader in Singapore. “On top of that, we could see a slow down in Chinese demand.” The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 0.2% to $10.12-1/2 a bushel as of 0308 GMT. It had dropped to its lowest since March 5 at $10.10 a bushel earlier in the session. Wheat fell 0.8% to $5.58 a bushel and corn gave up 0.2% to $4.71 a bushel.
China’s consumer price index in February missed expectations and fell at the sharpest pace in 13 months, while producer price deflation persisted. This has heightened concerns over soybean demand in China, by far the world’s top importer.
Market players are waiting for the US Department of Agriculture monthly supply/demand report due later in the day.
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