Soybeans stuck near 10-year low as trade battle hangs over market
PARIS/SINGAPORE: Chicago soybean futures edged down on Monday to set fresh decades lows as the prospect that a US-China trade clash will weaken demand continued to hang over the oilseed market.
Benign weather for soybean and corn in the US Midwest, with crops forecast to see cooler temperatures and some rain in the coming days, contributed to bearish sentiment in both markets.
Chicago wheat was also lower, consolidating after a steep two-day rally fuelled by a declining harvest outlook for Europe and the Black Sea region.
"Grain markets are not getting any supportive news," US brokerage Allendale said in a note. "Crop conditions look great, tariff talks are at a standstill and the technical path of least resistance is lower."
The most-active soybean contract on the Chicago Board Of Trade was down 0.6 percent, to $8.29-1/4 a bushel by 1142 GMT.
It earlier slipped to $8.26-1/4, the weakest since December 2008.
Worries about fallout from a tit-for-tat tariffs between Washington and Beijing in a deepening trade dispute remained the focus for soybeans, the most valuable US agricultural exports to China.
The US Department of Agriculture reinforced such concerns on Thursday when it slashed its US export forecast for the 2018-19 season by 250 million bushels and projected end-of-season stocks at the highest on record.
China's soybean imports in June jumped 13.1 percent from a year ago as buyers scooped up Brazilian supplies to avoid potentially higher costs on US shipments.
In the US Midwest, the weather outlook could give a further boost to corn and soybeans that have posted strong ratings so far in the growing season.
"Forecasted cool weather favourable for US corn and soybean crops entering into pollination and blooming stages," Thomson Reuters Agriculture Research analysts said.
"Potential rainfall also welcome with the exception of northern Iowa/southern Minnesota."
Grain markets will get a further indication about US crop conditions in the USDA's weekly crop progress report later on Monday.
CBOT corn slipped 0.7 percent to $3.52-1/4 a bushel. Individual delivery months held close to contract low set last week.
Wheat lost 1.2 percent to $4.91 a bushel, after adding more than 5 percent in the two previous session.
Wheat prices have been supported by weather-related cuts to harvest forecasts in Europe and the Black Sea region, including in Russia, the world's biggest exporter.
However, brisk early season exports by Russia have also underscored the country's competitive edge against western European and US wheat.