Markets

CBOT soybeans end lower on the week ahead of US-China talks

CHICAGO: Chicago Board of Trade (CBOT) soybean futures ended the week lower, but ended slightly up on Friday, ahead
Published July 26, 2019

CHICAGO: Chicago Board of Trade (CBOT) soybean futures ended the week lower, but ended slightly up on Friday, ahead of a meeting next week between negotiators from the United States and China as the countries seek to end their yearlong trade war.

* CBOT August soybeans ended Friday up 3/4-cent to $8.83-1/4 a bushel. New-crop November soybeans ended 1-1/4 cents higher at $9.01 a bushel.

* CBOT August soymeal fell $0.80 to $303.10 per short ton, and August soyoil rose 0.2 cent to 28.47 cents per pound.

* For the week, the August contract fell 18.25 cents per bushel or more than 2%, its second consecutive weekly decline.

* The CFTC's weekly commitments report showed large speculators trimmed their net short position in CBOT soybeans by about 1,300 contracts in the week to July 25, to 56,386 lots.

* Dealers said the soybean market had derived support this week from hopes that a thaw in trade relations between the United States and top soybean buyer China could result from next week's negotiations.

* Traders said soybean balance sheets are starting to become more of a focus for the market, as uncertainty over demand for US stocks grow as the US and China trade war continues to drags on.

* Top US and Chinese negotiators will meet face-to-face next week for the first time since leaders of both countries agreed in June to revive talks aimed at ending a year-long trade war between the world's two largest economies.

 

Copyright Reuters, 2019

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