Chicago | Reuters—Chicago soybean futures sank to life-of-contract lows on Tuesday as favorable crop conditions in Brazil and weak Chinese demand for U.S. soybeans hung over the market, traders said.
Wheat futures fell as worldwide wheat prices softened, while corn also dropped on spillover weakness from wheat and soybeans.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1ended down 5-1/4 cents at $9.76-3/4 a bushel, hitting its lowest level since October on a continuous chart Sv1. Every soybean contract month struck a lifetime low.
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“The South American harvest and lackluster Chinese demand are both in the face of the market, and that’s what’s pressuring new contract lows,” said Dan Basse, president of AgResource.
In Brazil, the world’s biggest soybean producer and exporter, the 2024-25 planting is complete, consultants AgRural said on Monday. The consultancy predicted record production of 171.5 million metric tons.
Data from the National Oilseed Processors Association showed the U.S. soybean crush declined in November from an all-time high in October and fell short of most trade estimates, adding more bearish sentiment to the market.
CBOT wheat Wv1settled down 5 cents at $5.45 a bushel. Weakening international wheat prices, particularly in Argentina and Australia, have counterbalanced reports of rising prices and slowing shipments in Russia, traders said.
Rain forecast for the U.S. winter wheat belt and caution over U.S. export prospects have also helped curb Chicago prices, analysts said.
CBOT corn Cv1ended 1-1/2 cents lower at $4.43-1/2 as spillover weakness from soy and wheat futures as well as favorable weather in South America weighed on prices.
“It’s going to be hard to keep corn up when you’re seeing sinking sister commodities and soy hitting lows,” Basse said.
A firm dollar .DXY weighed on grains, making them more expensive overseas.
—Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra
