Chicago | Reuters — U.S. soybean futures eased on Monday on active harvesting across the Midwest farm belt and brisk early planting as well as exports in rival supplier Brazil, and as top importer China continues to shun U.S. supplies.
Corn futures ended firm on short covering, but the market remained anchored by rising supplies from an accelerating U.S. harvest of what is expected to be a record-large crop. Wheat was lower in a pullback from three sessions of gains.
Trading was cautious as the market awaited an update on Tuesday on U.S. government aid to soy farmers hurt by the trade war with China and an upcoming meeting between U.S. President Donald Trump and China’s Xi Jinping at the end of the month.
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“It’s been quiet. We’re waiting to see what the type of aid package will be released here tomorrow. And as far as new trade flows, things are kind of quiet there as well,” said Rich Nelson, chief strategist with Allendale Inc.
Soybeans were also pressured by brisk early planting in Brazil, with the pace at its second-highest level for the date, as of last Thursday, according to agribusiness consultancy AgRural.
Stiff export competition has weighed on U.S. prices. Brazilian soybean exports in September were 20 per cent ahead of the same month last year while corn exports were up 18 per cent, according to government data.
News on new export sales and U.S. crop harvesting progress was unavailable due to a federal government shutdown. Analysts polled by Reuters estimate the corn and soy harvests to be 29 per cent and 39 per cent complete, respectively.
However, weekly export inspections figures on Monday were released and were in line with trade estimates.
Chicago Board of Trade November soybeans SX25 settled 1/4 cent lower at $10.17-3/4 a bushel, while December corn CZ25 was up 2-3/4 cents at $4.21-3/4 a bushel. CBOT December wheat WZ25 fell 2-1/2 cents to $5.12-3/4 per bushel.
— Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
