US soyabean futures hit a one-month low on Thursday and corn and wheat futures also fell on doubts about whether China will make the purchases from the United States promised in a trade deal between the two countries, analysts said.
As of 12:48 p.m. CST (1848 GMT), Chicago Board of Trade March soyabean futures were down 4-1/2 cents at $9.24-1/4 per bushel, after dipping to $9.22, the contract's lowest since Dec. 13. CBOT March corn was down 11-1/2 cents at $3.76 a bushel and March wheat was down 8-1/4 cents at $5.65 a bushel.
US cattle and lean hog futures also declined as brokers digested the US-China trade deal that was signed on Wednesday.
Under the terms of the pact, China committed to increase purchases of US farm products by $32 billion over two years, including $12.5 billion above the corresponding 2017 baseline of $24 billion in 2020 and $19.5 billion above the baseline in 2021.
However, China's pledge to buy US agricultural goods based on "market conditions" added to doubts about the size of any future purchases.
CBOT grains showed little reaction Thursday as the US Senate approved a revamp of the 26-year-old North American Free Trade Agreement. The legislation for the US-Mexico-Canada Agreement passed on a bipartisan vote, sending the measure to President Donald Trump for him to sign into law.
Mexico is a major buyer of US corn, soyabeans, sorghum and wheat. Traders also shrugged at better-than-expected weekly US export sales. The US Department of Agriculture reported export sales of US 2019/20 corn in the week ended Jan. 9 at 784,700 tonnes and 2019/20 wheat at 650,600 tonnes, topping trade expectations. Weekly soyabean sales were in line with expectations at 711,400 tonnes.
Corn futures faced pressure from favorable South American crop weather bolstering expectations for large harvests, and poor profit margins for US producers of corn-based ethanol fuel, Cekander said.
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