Soybeans drop; wheat nears 4-week peak

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SINGAPORE- Chicago soybean futures edged down on Thursday, falling for three out of four sessions on concerns over declining demand in China, which has been hit by the coronavirus epidemic.

Wheat was little changed, trading close to its highest since late January, supported by concerns over global supplies after lower production in Australia, a key global exporter.

“Several parts of China are in lockdown for more than 20 days now, the demand for soybeans and other products is bound to decline,” said one Singapore-based trader at a company which has soybean processing facilities in China.

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China is struggling to get its economy back on track after imposing severe travel restrictions to contain the virus that emerged in the central province of Hubei late last year and has claimed more than 2,000 lives, with over 74,000 people infected.

The most-active soybean contract on the Chicago Board Of Trade was down 0.1 percent at $8.96 a bushel.

Wheat was flat at $5.62-1/2 a bushel. It touched the highest since Jan. 29 on Tuesday at $5.70-3/4 a bushel after Australia said its 2019/2020 wheat harvest missed its forecast as a severe drought across the east coast wilted crops.

Corn was up 0.2 percent at $3.78-1/2 a bushel, having closed down 0.7 percent in the previous session. — Reuters

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