Soybeans pause after slide on US-China trade disappointment
DBA•Chicago soybean futures steadied after falling more than 2% on Monday, as a US-China summit produced no new purchase commitments and left soybeans off the list of goods set for tariff cuts. USDA data showed 17% of the US soybean crop and 18% of the corn crop had been harvested, while quarterly US stocks data was due Wednesday.
1. Trade disappointment weighs
The most-active Chicago soybean futures contract was up 0.04% at $12.88-3/4 a bushel by 1057 GMT on Tuesday, after touching a four-week low a day earlier. The US-China summit brought no additional soybean purchase commitments, and soybeans were excluded from a list of US agricultural goods set for tariff cuts.
2. Harvest and stocks data
The summit outcome suggests US soybeans will continue to face an additional Chinese tariff of 10%. Commerzbank analysts said the tariff is likely to make it difficult for US farmers to compete with cheaper Brazilian supplies. USDA data showed farmers had harvested 17% of the soybean crop and 18% of the corn crop, below market expectations of 20% for each; quarterly US stocks data was due Wednesday.
3. Wheat prices fall
CBOT wheat was down 0.73% at $6.83-3/4 a bushel, after reaching its lowest since August 19. The article cited a rising dollar, tepid export demand and hopes that diplomacy may ease disruption to Black Sea grain exports as factors weighing on prices.
