Key Takeaways
- Chinese purchases support soybean prices on the Chicago Board of Trade.
- Corn prices continue to fall, nearing a two-month low.
- Dry weather in the US Midwest aids in the rapid harvest of summer crops.
Chicago soybeans saw a slight increase on Monday, supported by renewed Chinese purchases of US soybeans, according to the Chicago Board of Trade (CBOT).
The most-traded soybean contract rose 0.18% to $12.63-1/2 a bushel by 0510 GMT, with China’s return to the US soybean market providing significant support.
In the past three days, the US Department of Agriculture confirmed private sales of 558,000 metric tons of soybeans to China, bringing total confirmed sales to 1.358 million tons.
A recent spell of dry weather across the US Midwest has enabled farmers to speed up the harvesting of summer crops, with many prioritising soybeans over corn.
CBOT corn, however, slipped 0.21% to $4.73-1/4 a bushel, extending losses into a fifth consecutive session and remaining near a more than two-month low.
The price pressure on corn has persisted since the USDA raised its US corn production outlook in its October report, forecasting a 16.034 billion-bushel harvest, the second largest on record if realised.
Johnny Xiang, founder of Beijing-based AgRadar Consulting, noted that 'Bullish sentiment in the corn market faded after the USDA projected a larger-than-expected crop, driving prices below $5 a bushel.'
Wheat prices also saw a slight increase, rising 0.49% to $6.63-3/4 a bushel, rebounding from a two-month low touched on Friday.
However, favourable weather forecasts for US winter wheat planting this week continued to weigh on the market, keeping prices under pressure.
Bullish sentiment in the corn market faded after the USDA projected a larger-than-expected crop, driving prices below $5 a bushel.
Johnny Xiang, Founder of Beijing-based AgRadar Consulting
