SINGAPORE- Chicago soybean futures slid for a sixth consecutive session with the market trading near its weakest since mid-December on fears that a virus outbreak in China will curb demand.
Wheat gained ground with tightening supplies and strong demand supporting prices.
Asian stocks extended a global selloff on Tuesday as China took more drastic steps to combat the coronavirus, while bonds found favor on expectations central banks would need to keep stimulus flowing to offset the likely economic drag.
“This flu is clearly spreading beyond China’s borders as cases in many countries come to light,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
“At present, the likely outcome is another dent to China’s economy and their biggest suppliers.”
The most-active soybean contract on the Chicago Board Of Trade lost 0.4 percent to $8.94 a bushel, having dropped to a Dec. 12 low of $8.88-1/4 a bushel on Monday.
Wheat added 0.1 percent to $5.73 a bushel and corn gained 0.2 percent to $3.81-1/4 a bushel.
The US wheat market is being underpinned by tightening world supplies and firm demand.
Ukraine grain exports in the 2019-20 July-June season were up about 29 percent year-on-year at 35 million tons as of Jan. 27, helped by higher wheat and corn exports, the Ministry for Development of Economy, Trade and Agriculture said on Monday.
The US Department of Agriculture said on Monday that export inspections of wheat fell to 223,994 tons in the week ended Jan. 23 from 516,309 tons a week earlier. The weekly total was well below analysts’ forecasts that ranged from 400,000 tons to 600,000 tons. — Reuters
