SINGAPORE- Chicago soybean futures lost more ground on Thursday, with the market dropping to its lowest in almost a month, as doubts emerged about China’s demand for US supplies as promised in a trade deal between the two countries.
Wheat slid after climbing for the last two sessions, while corn fell for a third day.
The United States and China on Wednesday signed the Phase 1 trade deal, meant to reduce tensions after nearly two years of a tit-for-tat tariff war.
However, China’s pledge to buy US farm goods based on “market conditions” during the deal signing ceremony added to doubts among farmers and commodity traders over Beijing’s lingering tariffs on US exports.
“China’s market conditions might not be favorable for soybeans, given the number pigs left after African swine fever,” said Phin Ziebell, agribusiness economist at National Australia Bank.
“Soybean purchases are unlikely to be strong. There is not much upside potential for prices.”
The most-active soybean contract on the Chicago Board Of Trade was down 0.2 percent to $9.26-1/2 a bushel, near the session low of $9.25 a bushel – the weakest since Dec. 20.
Soybeans closed down 1.4 percent on Wednesday.
Wheat was down 0.4 percent to $5.70-3/4 a bushel, having closed up 0.8 percent on Wednesday, when prices hit their highest since August 2018 at $5.79. – Reuters