Chicago soybeans, corn edge down on ample US supplies, China demand worries

Chicago soybean and corn futures eased on Thursday to trade near their lowest since 2020, weighed by ample U.S supplies and concerns over China demand.

Wheat gained as rains disrupted harvesting in western Europe.

The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was down 0.51% at $10.17-2/8 a bushel by 0415 GMT.

CBOT corn Cv1 slipped 0.38% to $3.98-2/8 a bushel. Wheat Wv1 rose 0.24% to $5.28 a bushel.

“The market is still trying to work out whether the apparent demand downturn in China is real or whether it is a question of timing,” Ole Houe, director of advisory services at IKON Commodities in Sydney.

Farmers have begun selling their old crop in storage as they lose hope for higher prices and need to make room for the upcoming harvest.

The U.S. soybean crush likely slowed in June to 5.538 million short tons, or 184.584 million bushels, analysts surveyed by Reuters estimated ahead of a monthly U.S. Department of Agriculture (USDA) report on Thursday.

The USDA confirmed private sales of 104,572 metric tons of U.S. corn to undisclosed destinations for delivery in the 2024/25 marketing year that begins on Sept. 1.

Brazil’s soy exports are seen reaching 9.76 million tons in July versus 10.43 million tons expected in the previous week, Brazil’s grain exporters association Anec said.

Ukrainian grain traders union UGA cut Ukraine’s 2024 combined grain and oilseeds crop forecast by 2.8 million tons to 71.8 million tons due to a heatwave.

In Australia, rainfall across much of the country has improved the outlook for its 2024/25 wheat production but demand for the crop from China could be very weak, analysts and traders said.

Storms and forecast for more showers could halt the French wheat harvest again after farmers made progress during an early-week hot spell.

Commodity funds were net sellers of Chicago Board of Trade corn, soybean and soymeal contracts and buyers of soyoil and wheat contracts on Wednesday, traders said.
Source: Reuters (Reporting by Mei Mei Chu; Editing by Subhranshu Sahu and Mrigank Dhaniwala)