BEIJING: Chicago soybeans declined for a second session on Thursday following the US-China trade truce framework, which appeared to lack specific agricultural details, while favourable weather conditions also weighed on prices. The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 0.29% at $10.47-4/8 per bushel as of 0420 GMT.
On Wednesday, US President Donald Trump expressed satisfaction with the deal that restored a fragile truce in the US-China trade war, following an agreement on a tariff rate framework between Washington and Beijing. However, traders remained cautious due to the absence of clear agricultural details. China, the largest buyer of US soybeans, had previously imposed tariffs of 10%-15% on $21 billion worth of American agricultural and food products. Corn prices held steady at $4.37 per bushel, partly pressured by strong production prospects.
The US Energy Information Administration (EIA) reported weekly corn-based ethanol production reached a record-high 1.120 million barrels per day, while stockpiles dropped to 23.734 million barrels, the lowest this calendar year.
Both soybeans and corn were pressured by favourable Midwest weather conditions. Wheat rose 0.19% to $5.35-2/8 a bushel after three straight sessions of losses.
On Wednesday, Argentina’s Rosario grains exchange slightly lowered its wheat harvest estimate for the 2025-26 season due to floods. The Taiwan Flour Millers’ Association issued an international tender to purchase an estimated 95,450 metric tons of grade 1 milling wheat to be sourced from the United States, European traders said.
Improved crop conditions in the US and Russia continued to cap wheat price gains. Traders are also positioning ahead of the US Department of Agriculture’s monthly supply-demand reports and weekly export sales report due later in the day.
Commodity funds were net sellers of CBOT corn, soybean, and soymeal futures on Wednesday, remained net even in wheat, and were small net buyers of soyoil futures, according to traders.
Comments
Comments are closed for this article.