Chicago | Reuters — U.S. soybean futures fell 2.1 per cent on Monday, hitting their lowest since Nov. 8, as a lack of consensus at a meeting of Asia-Pacific leaders cooled hopes of Washington and Beijing resolving a trade dispute that has disrupted U.S. soybean exports to China.
Wheat prices also fell sharply, shedding 1.7 per cent as investors continued to wait for an upturn in U.S. exports that has been widely expected due to reduced supplies in other exporting countries.
Corn edged lower, weighed down by the weakness in soybeans and wheat.
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Declines in projected planting intentions for 2026/27 were not as big as the market expected, after the United States Department of Agriculture released its estimates on March 31. The USDA also issued its quarterly grain stocks report with stocks for soybeans bigger than anticipated, while those for corn were smaller and wheat virtually matched the average trade guess.
“The grain and oilseed sector is particularly hit hard today by the lack of progress in the trade talks, with soybeans paying the steepest price,” INTL FCStone said in a note to clients.
Asia-Pacific leaders failed to agree on a communique at a summit in Papua New Guinea on Sunday for the first time in their history as deep divisions between the U.S. and China over trade and investment stymied co-operation.
“Vice-President Pence took aim at China at a summit in Asia over the weekend, dampening hopes talks between the two countries at the end of the month will yield a breakthrough,” Farm Futures analyst Bryce Knorr said in a note to clients.
Soybean prices had gained ground on Friday after U.S. President Donald Trump said his administration may not have to impose further tariffs on China, the world’s biggest soybean buyer.
Chicago Board of Trade soybean futures for January delivery ended down 18-1/2 cents at $8.73-3/4 a bushel (all figures US$).
Investors are looking ahead to a gathering of G20 countries in two weeks at which Trump and Chinese President Xi Jinping are expected to hold talks.
CBOT December soft red winter wheat fell 8-1/4 cents to $4.98-1/2 a bushel. K.C. December hard red winter wheat futures staked out a new contract low of $4.70 a bushel during the session.
The wheat drop came despite further weakness in the dollar, which analysts said had been likely to boost demand for greenback-priced U.S. commodities, including wheat exports.
The dollar hit a two-week low on Monday morning, pressured by cautious comments about the U.S. economy from Federal Reserve officials.
However, shipments from Russia have remained brisk, despite tighter supply than in the U.S.
CBOT December corn futures closed off 2-1/2 cents at $3.62-1/4 a bushel. The contract found technical support at the low end of its 20-day Bollinger range.
— Mark Weinraub is a Reuters commodities correspondent in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
