CANBERRA/PARIS: Chicago soybean futures edged lower on Tuesday to hold at their lowest since late October amid market doubts about the scale of Chinese demand for US soybeans under a bilateral trade truce, and on expectations that large South American production will keep the market well supplied.
Wheat futures edged down for a third day, with Argentina’s announcement that it will lower export taxes on major grains underscoring international competition.
Corn ticked up after a two-session fall, supported by healthy demand for US exports. Price moves were limited as grain markets awaited the US Department of Agriculture’s monthly supply-demand report later in the day.
The most-active soybean contract on the Chicago Board of Trade (CBOT) had fallen 0.6 percent to USD10.87-1/2 a bushel by 1231 GMT.
Soybeans rallied to a 17-month high of USD11.69-1/2 in mid-November after top importer China resumed US purchases after the truce in the countries’ trade standoff. But prices slipped as low as USD10.91-3/4 on Tuesday, setting their weakest since October 30 for the second day in a row.
“There’s certainly more room to fall,” said Sean Hickey, an analyst at Bendigo Bank Agribusiness Insights in Australia.
China does not appear to be buying as much soy as US officials said it would, and Brazilian soybeans are cheaper than US supplies, he said.
The USDA confirmed on Monday that China had bought another 132,000 metric tons of US soybeans, taking total confirmed sales since late October to nearly 3 million tons.