SINGAPORE: Chicago soybeans slid for a third consecutive session on Tuesday, with prices dropping to their lowest in almost one week amid ample Brazilian supplies and worries over demand in top importer China. Wheat and corn also fell, weighed down by a broad-based decline in stock markets.
“In the physical market, there are plenty of soybeans in South America, which will give competition to US beans,” said one grains trader in Singapore.
“On top of that, we could see a slow down in Chinese demand.” The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 0.2% to $10.12-1/2 a bushel as of 0308 GMT.
It had dropped to its lowest since March 5 at $10.10 a bushel earlier in the session. Wheat fell 0.8% to $5.58 a bushel and corn gave up 0.2% to $4.71 a bushel. China’s consumer price index in February missed expectations and fell at the sharpest pace in 13 months, while producer price deflation persisted.
This has heightened concerns over soybean demand in China, by far the world’s top importer. Market players are waiting for the US Department of Agriculture monthly supply/demand report due later in the day.
The report will consider trade policies in place when the forecasts for grains and soybeans are issued, an agency official said on Thursday.
Russian wheat export prices continued to decline for the second week in a row, but they have yet to regain competitiveness against European grains.
Traders also were keeping a close eye on concerns about dryness in US and Russian crop belts — particularly in parts of the US southern plains, where hard red wheat crops are growing and will need moisture.
However, India is likely to produce a record 115.4 million metric tons of wheat in 2025, the farm ministry said on Monday, as higher state-set guaranteed prices prompted farmers to expand the area planted with high-yielding seed varieties.
Commodity funds were net buyers of CBOT corn and wheat futures contracts on Monday, and net sellers of soybean, soymeal and soyoil futures, traders said.
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