BEIJING/PARIS: Chicago soybean futures edged lower on Wednesday as the market took a breather following a recent rally fuelled by hopes of stronger Chinese demand, while traders assessed a US government crop report.
Wheat rebounded after a three-day fall, supported by a weaker dollar, and corn was little changed.
The most-active soybean contract on the Chicago Board of Trade was down 0.2 percent at USD11.19-3/4 a bushel by 1222 GMT.
The benchmark climbed to a two-month high last week, spurred by US President Donald Trump’s remark that China had increased its target for US soybean purchases under a trade truce.
The US Department of Agriculture on Monday confirmed new export sales of 264,000 metric tons of US soybeans to China.
However, traders are cautious about further demand given the competition from Brazil’s ongoing harvest.
In a world crop report on Tuesday, the USDA raised its estimate of 2025/26 soybean production in Brazil by 2 million metric tons to 180 million tons, above the average analyst estimate.
The agency left its supply and demand outlook for US soybeans unchanged.
Regarding exports, it said that China was “reported to be considering buying more US soybeans”. But with expected global demand stable, any more Chinese purchases would likely mean a reshuffle in US exports “with more US shipments to China and less to other markets.”
CBOT wheat gained 0.9 percent to USD5.33 a bushel. Corn ticked down 0.1 percent to USD4.28-1/2 a bushel.
The USDA also raised its forecast of US 2025/26 wheat ending stocks, bucking trade expectations for a reduction, while reducing its forecast of US corn ending stocks due to an increased export projection.
The dollar index fell ahead of the closely tracked US jobs data, supporting Chicago grains by making US supplies cheaper for overseas buyers.
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