Chicago | Reuters – U.S. soybean futures set a six-week low on Tuesday under pressure from a lack of Chinese demand and increased competition for export sales from Argentina, analysts said.
The market finished slightly higher in a technical rebound, traders said.
Wheat futures also recovered after setting contract lows, with an expected boost to Argentine exports weighing on the cereal market amid ample global supplies.
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Argentina on Monday temporarily eliminated export taxes on soybeans, grains and their byproducts, as well as on beef and poultry, in a bid to speed up sales abroad and rake in much-needed dollars to prop up the flagging peso.
Chinese buyers then booked at least 10 cargoes of Argentine soybeans, three traders said, dealing another setback to U.S. farmers already shut out of their top market and hit by low prices.
China has yet to buy soybean cargoes from the autumn U.S. harvest, an unusual delay, and the window for possible deals was shrinking, traders said.
“China is the key U.S. beans buyer,” said Andrey Sizov, head of consultancy Sovecon. “The temporary Argentina taxes elimination put additional pressure on the market.”
Chicago Board of Trade November soybeans SX25 closed 1 cent higher at $10.12 per bushel. The most-active contract Sv1 dropped earlier to $10.05 a bushel, its lowest level since August 12.
“We had gotten a bit oversold, especially in soybeans,” said Ted Seifried, chief market strategist for Zaner Ag Hedge.
Hopes of a resumption in U.S. soybean trade with China were dashed when a call on Friday between U.S. President Donald Trump and Chinese counterpart Xi Jinping brought no news about agricultural commodities.
Soybean and corn futureswere also facing seasonal supply pressure from the onset of the U.S. harvest, though doubts over yields have helped underpin markets.
The U.S. corn harvest was 11 per cent complete by Sunday and the soybean harvest was nine per cent finished, according to U.S. government data.
CBOT December corn CZ25 settled up 4-1/2 cents at $4.26-1/4 per bushel.
CBOT December wheat WZ25 settled up 9-3/4 cents at $5.20-1/2 per bushel after falling earlier to a contract low of $5.07-1/4.
–Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore.
