GRAINS-Chicago soyabeans extend losses due to favorable weather and weak demand
Chicago soybean futures dropped on Wednesday due to favourable weather conditions in the U.S. Midwest, and weak demand.
By 0338 GMT the most active soybean contract at the Chicago Board of Trade dropped 0.05%, to $10.09 a bushel. This is on course for a fourth session of falling soybean prices.
Corn fell 0.18%, to $4.10 per bushel. Wheat fell 0.42%, to $5.28 per bushel. This is near the seven-week low.
Forecasts of cooler Midwest temperatures, and periods of rain in the U.S. Midwest, boosted expectations for an abundant harvest and pushed corn and soybean futures.
Wheat prices were under pressure due to the lack of demand globally and the harvests in Northern Hemisphere.
The demand for soybeans in China, the top soy-buyer, is expected to be subdued later this year during peak U.S. Marketing Season. Imports that reached record levels in 2025, combined with a soft demand by animal feed producers, have contributed to the build-up of domestic soymeal stocks.
After two days of talks held in Stockholm, U.S. officials and Chinese officials have agreed to extend their 90-day trade truce. The goal was to defuse an escalating conflict between the two largest economies of the world.
There were no major developments announced. U.S. officials stated that it was up President Donald Trump whether or not to extend the current trade truce, which expires August 12.
The market is not expecting a resolution anytime soon, and Chinese crushers are unlikely to buy farm products again. This suggests that the arrival of soybeans in China in Q4 2025 or Q1 2026 will be steeply reduced.
Traders reported that commodity funds sold CBOT corn and wheat futures and soymeal contracts and bought soyoil.
(source: Reuters)
