Chicago | Reuters—Chicago Board of Trade soybeans ended lower on Monday, as prices were weighed down by weakness in the oil market and traders’ concern over Chinese deflation, market analysts said.
In addition to market uncertainty caused by U.S. trade tariffs, traders were tuned into news that China’s consumer price index fell at the sharpest pace in 13 months in February – and how much that might chill demand for U.S. soy going forward.
Soybeans also are being pressured by the South American harvest coming on strong, said Karl Setzer, partner at Consus Ag. “There’s just not a lot of positive news right now for soy.”
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Meanwhile, corn futures ticked higher ahead of a key global supply-and-demand report, as market participants adjusted their positions.
And wheat futures firmed, with the most-active contract Wv1 touching the highest price since February 28, after Russia lowered its wheat crop estimate, traders said.
Chicago Board of Trade most-active soybeans Sv1 settled down 11 cents at $10.14 a bushel, with soyoil futures following crude oil lower in the session. Corn Cv1 ended up 2-3/4 cents at $4.72 a bushel and wheat Wv1 rose 11-1/4 cents at $5.62-1/2 a bushel.
Traders also were keeping a close eye on concerns about dryness in U.S. and Russian crop belts – particularly in parts of the U.S. southern Plains, where hard red wheat crops are growing and will need moisture.
While this is not typically the time of year when weather severely damages crop production, a lack of moisture can affect yields, said Ben Buckner, AgResource Co grains and dairy analyst.
Market players are waiting for the USDA’s next monthly supply/demand report on March 11. The report will consider trade policies in place when the forecasts for grains and soybeans are issued, an agency official said on Thursday.
—Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore
