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US soyabean futures retreated on Tuesday on improving crop prospects and a lack of progress in trade talks with China, the world's top importer of the oilseed, traders said. Prices took a hit after soyabeans climbed on Monday on short covering and hopes for easing tensions in the trade war between Washington and Beijing. After the close of trading on Monday, the US Department of Agriculture (USDA) increased its good-to-excellent rating for the nation's soyabean crop by 2 percentage points to 55%, topping analysts' estimates for 54%. Ratings climbed by 10 percentage points to 50% good to excellent in Illinois and by 4 percentage points to 48% in Missouri.

The USDA also raised its corn rating by 1 percentage point to 57%, matching expectations. Mostly favourable crop weather fuelled expectations that crop conditions may continue to improve. Chicago Board of Trade most-active soyabeans dropped 1% to $8.59-1/4 a bushel. Corn futures slipped 0.6% to $3.66-1/4 a bushel, while wheat rose 0.5% to $4.76-3/4 a bushel.

Traders and farmers remain uncertain about the size of the upcoming soyabean and corn harvests after historic rains and flooding delayed plantings this spring. Only 79% of US soyabeans had set pods by Aug. 25, breaking the modern-era record for that date of 80%, set in 1996, according to the USDA. Soyabean traders are also watching the trade war because China is the world's biggest importer of the oilseed. China bought $12 billion a year worth of US soyabeans prior to the dispute but slashed purchases as tensions escalated last year. Egypt, the world's largest wheat buyer, said it had bought 350,000 tonnes of Russian, Ukrainian and French wheat in a tender. No US wheat was offered.

Copyright Reuters, 2019


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