Soybeans fall for second session; market eyes Chinese demand

SINGAPORE: Chicago soybeans lost more ground on Wednesday, as the market took a breather after climbing to its highest point since June 2024 in the previous session on the back of large Chinese purchases.

Corn slid for the first time on three sessions, while wheat prices slipped as grain markets continue to face headwinds from ample world supplies.

“We saw bullish momentum on Monday as China bought US cargoes, but the market is a bit overbought right now,” said one Singapore-based trader. “Prices are likely to consolidate or ease unless we see another round of Chinese buying.”

The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.4% at $11.49-1/4 a bushel, as of 0317 GMT.

Corn lost 0.4% to $4.35 a bushel and wheat gave up 0.2% to $5.58 a bushel.

China has stepped US soybean buying this week, making its largest purchase since at least January and buoying Chicago futures.

The US Department of Agriculture confirmed China purchased 792,000 metric tons of American soybeans.

Reuters reported earlier on Monday that Chinese state-owned grain trader COFCO bought around 840,000 metric tons for shipment in December and January.

China previously shunned US soybeans during its trade war with Washington and is grappling with a glut after importing cargoes from South America.

The White House said last month that China had agreed to buy 12 million tons of US soybeans this year.

China was still far from that target.

Meanwhile, a cargo of Argentine soybean meal has cleared Chinese customs, two China-based traders said, marking the first such shipment since Beijing approved such imports in 2019 and signalling a new trade channel with the world’s top soymeal exporter.

In other news in agricultural markets, Indian farmers are set to expand wheat acreage by about 5% to a record high, aided by higher returns and October’s untimely rains, which improved soil moisture and encouraged a shift from rain-fed crops to the cereal.