CBOT soy sets five-month low on rising competition for export sales

CHICAGO: Chicago Board of Trade (CBOT) soybean futures dropped to a five-month low on Wednesday as large harvests in South America fueled concerns over export demand, traders said.

CBOT May soybeans settled 9 cents lower at $8.79 per bushel. The contract set its lowest price since Nov. 1, 2018.

The United States is facing competition for export business from South America, where Argentina estimated its soy harvest at 55.9 million tonnes. Argentina's production has increased after a drought slashed harvests last year.

In Brazil, consultancy Celeres pegged the country's soybean crop at 115.8 million tonnes, up from its previous estimate of 113.8 million.

Traders are watching for signs of progress in talks between Washington and Beijing because China is the world's largest export market for US soy.

A trade deal could boost China's imports of US soy. However, traders want to see specific details about a potential deal after months of negotiations without a resolution.

US President Donald Trump said he has a feeling a trade deal with China will be successful.

The United States and China have tentatively scheduled a fresh round of face-to-face trade talks, with negotiators aiming to hold a signing ceremony in late May or early June, according to The Wall Street Journal.

Traders and analysts estimate the USDA on Thursday will report US soybean export sales in the week ended April 11 were 350,000 to 850,000 tonnes.

CBOT May soymeal ended down $2.60 at $303.90 per short ton while May soyoil fell 0.26 cent at 28.46 cents per pound.