CHICAGO – US soybean futures slid to a two-month low on Wednesday on technical selling and expectations that increased rains will benefit crops in rival shipper South America.
Corn and wheat futures also fell as traders adjusted positions ahead of Thursday’s
Thanksgiving holiday, when US markets will close. The markets will reopen for a shortened trading session today.
The latest declines hit agricultural prices that have been under pressure for more than a year from the US-China trade war, which has slowed exports of US farm products.
China is the world’s biggest soybean importer and bought $12 billion worth of the crop from the United States in the year before the dispute began. It then turned to Brazil for supplies, instead of the United States.
Rainfall is expected to increase across Brazil over the next week, leading to major improvements in soil moisture across northern and central growing areas, according to weather firm Maxar.
“The weather prospects for South America have improved and without a trade agreement signed with China, there is not a lot of reason to buy soybeans at this time, other than a technical upward correction,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa. – Reuters