BEIJING: Chicago soybean futures were flat on Thursday, holding near a four-month low amid favourable weather, abundant global supplies and sluggish Chinese demand.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was steady at $9.96 per bushel, as of 0439 GMT, following four consecutive sessions of losses.
On Tuesday, the world’s biggest soy buyer, China, and the United States agreed to seek an extension of their 90-day truce to the tariff dispute that has hurt American farm exports.
However, traders remain sceptical about a near-term breakthrough in agricultural negotiations, particularly as a domestic soymeal surplus in China is likely to weaken demand during the peak U.S. marketing season.
Corn futures were unchanged at $4.12-2/8 per bushel, pressured by favourable Midwest weather that is boosting expectations for a strong U.S. harvest.
Harvesting has already begun in the far southern fringes of the crop belt, including Texas and Louisiana, weekly US data showed.
Meanwhile, Taiwan’s MFIG purchasing group bought about 65,000 metric tons of animal feed corn, expected to be sourced from the U.S. in an international tender on Wednesday.
Wheat dipped 0.05% to $5.23-4/8 a bushel, falling for a third consecutive session, pressured by ongoing harvests across the Northern Hemisphere.
However, wheat prices received some support from the Bangladesh government’s approval to purchase about 220,000 tons of U.S. wheat as part of efforts to ease trade tensions.
Traders are awaiting weekly U.S. grain and soybean export sales data from the U.S. Department of Agriculture due later in the day. The agency is also expected to raise its U.S. corn yield estimate in a monthly crop report due on August 12.
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