BEIJING: Chicago soybean futures fell on Monday, weighed down by abundant global supplies, sluggish demand and benign weather across the US Midwest.
The most-active soybean contract on the Chicago Board of Trade (CBOT) declined 0.29% to $10.18 per bushel by 0252 GMT.
“Soybeans continue to be under pressure from the large US and global crops coming our way soon.
It’s hard for that market to get any real lift for the next few months,” said Ole Houe, director of advisory services at IKON Commodities in Sydney.
Weak export demand further weighed on soybeans, with recent weekly US export sales hovering at the lower end of trade estimates. Corn fell 0.44% to $3.98 a bushel, weighed down by soft global demand and expectations for a large US harvest, underpinned by favourable weather conditions in the Midwest crop belt.
Wheat dropped 0.19% to $5.37 a bushel, as ongoing harvests across the Northern Hemisphere boosted global supply.
“Wheat is the odd one out where current US prices are cheap enough to attract global demand. We think wheat is more skewed to a rally than to a further fall,” Houe said.
On the tariff front, the United States and European Union struck a framework trade agreement on Sunday, imposing a 15% import tariff on most EU goods and averting a bigger trade war between the two allies that account for almost a third of global trade.
The South China Morning Post reported on Sunday that Beijing and Washington were expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday.
Traders were also taking positions ahead of the Trump administration’s August 1 tariff deadline.
In China, the agriculture ministry warned last Friday that high temperatures and drought might persist in some parts of the country and have adverse impacts on autumn grain production.
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