CBOT soybean futures sink as USDA unveils trade aid package

CHICAGO: Chicago Board of Trade (CBOT) soybeans declined on Thursday after the US Department of Agriculture (USDA) unveiled a trade aid package that was seen encouraging more planting of all crops, despite adverse weather that has delayed sowing this spring.

* The Trump administration unveiled the $16 billion farm aid package to offset losses from a trade war with China and said payment rates to farmers would be determined by where they farm rather than what crops they grow. The structure of the package was seen limiting the number of acres claimed as unplantable due to poor weather.

* CBOT July soybeans settled down 7 cents at $8.21-1/2 per bushel. The contract hit chart resistance at its 20-day moving average.

* CBOT July soymeal ended $1.10 lower at $297.20 per short ton while July soyoil fell 0.53 cent to 26.78 cents per pound.

* Soymeal futures were further weighed down by plunging crude oil prices.

* Rainy weather and soggy field conditions are still threatening Midwest planting. Poor field conditions may trigger a shift from corn acres to soybeans, which can be planted later in the spring.

* The USDA said soybean export sales totaled 541,000 tonnes in the latest reporting week, in line with forecasts for 100,000 tonnes to 800,000 tonnes.

* The lack of progress in US-China trade talks also hung over the soybean market. No talks between top Chinese and US negotiators have been scheduled since the end of two days of discussions in Washington on May 10.