A firming dollar, which makes US exports less attractive to buyers holding other currencies, added pressure. Traders focused on comments from US Senator Chuck Grassley that the US Trade Representative saw little progress made on structural issues in trade talks between Washington and Beijing last week.
Although China has booked about 5 million tonnes of US soyabean purchases since a 90-day trade war truce was agreed to on Dec. 1, there have been few details of any further progress in the talks. The two sides are trying to reach a deal that avoids a scheduled March 2 escalation of US tariffs on Chinese goods. Chicago Board of Trade March soyabeans fell 10-1/4 cents to $8.93-1/4 a bushel by 11:45 a.m. CST (1745 GMT), its lowest since Jan. 2.
March corn was down 6 cents at $3.72-1/2 a bushel after touching a near six-week low of $3.72-1/4. CBOT March wheat fell 3-3/4 cents to $5.10-1/2 a bushel. Traders remain concerned about dry weather in Brazil and excessive rains in Argentina that have trimmed soyabean yield prospects in both countries. Longer term forecasts, however, indicate more normal weather, suggesting many of the weather risks have already been absorbed by the market.
The National Oilseed Processors Association on Tuesday said last month's soyabean crushings topped the average trade estimate at 171.759 million bushels, the third highest monthly crush on record and the most ever for the final month of the year.