Soybeans hit 9-month low on big U.S. stocks, low Chinese buying
Chicago soybeans fell on Monday, hitting their lowest in around nine months as larger-than-expected U.S. stocks and lack of Chinese buying weighed.
Wheat fell after a rally last week, pulling down corn.
Chicago Board of Trade most-active soybeans fell 0.7% to $12.37-1/4 a bushel at 1044 GMT, after earlier on Monday hitting $12.35 a bushel, the lowest since Dec. 21.
Wheat fell 0.07% to $7.54-1/4 a bushel, corn fell 0.4% to $5.39 a bushel.
“Soybeans continued to be pressured by the U.S. Department of Agriculture’s (USDA) estimates of larger U.S. soybean inventories last week made after a long period in which the general perception was of tight U.S. supplies,” Matt Ammermann, StoneX commodity risk manager, said.
“Lack of substantial Chinese buying of U.S. soybeans is also depressing today. There have been recent U.S. soybean sales to China but not on the scale the market was looking for.”
U.S. Trade Representative Katherine Tai on Monday will seek negotiations with China over its failure to keep promises made in the Phase 1 trade deal. China agreed to boost purchases of U.S. products such as farm goods including soybeans.
“The question is whether China will start making some purchases in the U.S. to improve its standing or whether more pressure will be put on China to fulfill its Phase 1 purchasing commitments,” Ammermann said of the talks.
Although wheat was retreating after gains last week, he said the USDA’s estimates of smaller U.S. wheat supplies last week were providing support.
The USDA on Thursday reported U.S. wheat stocks at a 14-year low.
Source: Reuters (Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, Editing by Barbara Lewis)