GRAINS-Soybean Futures extended losses due to favorable US weather and weak demand

Analysts said that Chicago Board of Trade soy futures declined for the fourth session in a row on Wednesday. The decline was attributed to favorable weather conditions across the U.S. Midwest, and weak export demand.

Wheat futures fell, too, but corn futures rose.

Forecasts of cooler temperatures and occasional rainfall in the U.S. Midwest have boosted expectations for large U.S. corn and soy harvests. Futures prices are now impacted by this.

In a daily weather forecast, the U.S. Department of Agriculture stated that "most Midwestern crops are well-watered."

The most active soybean futures fell 9-1/2 cents to $10 per bushel at 10:30 a.m. CST (1530 GMT), and reached their lowest level since the 14th of July. China, which is the largest soy importer in the world, and the United States have agreed to extend their 90-day truce on the tariff dispute, which has hurt American farm products. Trade sources say that China's appetite will likely wane during the peak U.S. season this year due to record imports in 2025, and tepid animal feed demand. USDA data shows that China has not yet reserved U.S. soybeans for the harvest to come.

CBOT Soymeal Futures hit contract lows while Soyoil Futures reached contract heights.

CBOT Wheat was down 3 cents to $5.26-3/4 per bushel, and corn increased 1 cent to $4.12 per bushel.

A Dhaka official confirmed that the Bangladeshi government had approved the purchase of approximately 220,000 metric tonnes of U.S. Wheat as part of its efforts to reduce trade tensions.

Traders said that technical buying and short covering helped support corn prices. They also noted that the large U.S. crop forecasts continue looming over the market. Traders said that the USDA is likely to raise its U.S. Corn yield estimate in the monthly crop report, due on August 12. The traders have already tallied a yield of 181 bushels per an acre above the USDA's most recent estimate.

(source: Reuters)