Chicago grain, oilseed futures fall on uncertainty, favorable weather

CHICAGO: Chicago soybean and wheat futures eased on Thursday, with analysts highlighting uncertainty over the impact of the US and Israeli war on Iran and trade with China ahead of the US Memorial Day holiday.

Meanwhile, beneficial weather in the US Midwest favoured early crop germination and potential yields. The most active wheat contract on the Chicago Board of Trade (CBOT) settled down 13 cents to USD6.47-1/2 a bushel. Soybeans dipped 5-1/2 cents to end at USD11.94-1/4 a bushel, while corn lost 3-1/2 cents to finish at USD4.62-1/4 a bushel. Traders grappled with alack of specifics arising from trade talks last week during a meeting in Beijing between China’s President Xi Jinping and US President Donald Trump, as well as ongoing concerns about the direction of the Iran war, said Don Roose, president of US Commodities.

After the meeting, the White House said China had agreed to buy USD17 billion worth of US agriculture annually on top of an existing multi-billion-dollar soybean commitment, but Beijing was less specific in its statements after the meeting.

“All we hear is that they’re working on a framework deal,” said Roose. “The market is a little bit skeptical.” Meanwhile, rains have boosted soil moisture in the Midwest, favouring early germination of crops, forecaster Vaisala said, adding that warmer-than-normal temperatures in the northern Midwest next week should accelerate early growth.

Traders also monitored potential for rain in the drought-hit US Plains, where months of dryness have already left wheat fields with wide cracks and stunted crops.

In China, the world’s largest soybean buyer, imports from the US in April more than doubled from a year earlier, as cargoes booked after Beijing resumed purchases late last year gradually arrived at Chinese ports.