Earlier in the day, the March contract fell to $8.94-3/4 a bushel, the lowest price since Jan. 17. CBOT March soyameal ended down $1.10 at $305.40 per short ton, while March soyaoil ended up 0.21 cent at 29.74 cents per pound. With the March contract falling below the 10-day moving average, some traders are beginning to wonder whether the soyabean market is starting to have a bit of a reality check - given the huge US stocks and bigger questions whether a China trade deal will reduce the glut of US soyabean supplies.
The US Department of Agriculture reported export inspections of US soyabeans in the latest week at 1,031,294 tonnes, in line with trade expectations for 900,000 to 1,275,000 tonnes. Traders said that while soyabean shipments were consistent with the steady pace of exports going to China over the past month, the volume was still falling short of what is needed to repair the US's soyabean balance sheet.
Traders also said grain futures were being pressured on Tuesday by mounting concerns about exactly how much soyabean acreage US farmers will plant this spring, as South American weather improves and export competition from Brazil and Argentina shows little signs of waning.
The US Department of Agriculture is expected to release its forecasts for US 2019 corn, soyabean and wheat plantings this week at its annual Outlook Forum. China said it will continue to diversify its agricultural import channels, and increase its own domestic soyabean growing acreage, according to a government policy statement published on Tuesday.
The report comes as a new round of talks is underway between the United States and China to resolve their trade dispute, with follow-up sessions at a higher level later in the week.