Chicago | Reuters — U.S. soybean futures retreated on Thursday after two days of gains, pressured by profit taking and technical selling and on growing concerns about a promised farmer aid package and a breakthrough in U.S.-China trade negotiations.
Corn futures followed soybeans lower as U.S. harvesting of a likely record-large crop accelerated, while wheat futures were narrowly mixed.
Trading was restrained as a federal government shutdown postponed the release of U.S. Department of Agriculture monthly supply and demand report on Thursday. The shutdown deprived traders of the agency’s latest view of corn and soy production after plant diseases and late-season dryness likely eroded yields, analysts said.
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Meanwhile, details of a possible $10 billion to $15 billion farmer aid package promised by U.S. President Donald Trump this week have not been released. USDA Secretary Brooke Rollins said the administration could deliver aid once the government reopens.
“I think the realization is that the farmers are going to have to sell some production here to raise some cash, and we’re starting to factor that in a little bit,” said Jack Scoville, analyst with the Price Group.
China’s expansion of export controls on rare earth metals on Thursday raised doubts about a U.S.-China trade war resolution ahead of a meeting later this month between Trump and Chinese President Xi Jinping, when the two leaders were expected to discuss China’s lack of U.S. soy purchases.
“Soybeans especially have been rallying lately and I think that was off of hopes for that Trump and Xi are going to come to some type of a deal at the end of the month,” Scoville said.
Chicago Board of Trade November soybeans SX25 settled down 7-1/4 cents at $10.22-1/4 a bushel and December corn CZ25 was down 3-3/4 cents at $4.18-1/4 a bushel. CBOT December wheat WZ25 fell 3/4 cent to $5.06-1/2 a bushel.
— Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra.
