Chicago Soy Futures Decline for Fourth Straight Day
Chicago’s soy futures dropped for the fourth consecutive session on Wednesday, primarily due to favorable weather conditions and a decrease in export demand in the US Midwest, according to analysts.
Alongside soy, wheat futures also showed signs of weakness, while corn futures experienced an increase.
Cool temperatures and consistent rainfall in the Midwest have reinforced expectations for a bountiful US harvest of soy and corn. Recent rains over the past week have significantly improved crop conditions, as noted by the weather forecasting firm Vaisala.
The US Department of Agriculture reported that “most crops in the Midwest remain robust.”
The most actively traded soybean futures closed at $1.00 per bushel, marking a decline of 13-3/4 cents and hitting the lowest price point since April 9.
Export demand from the US is affected by ongoing trade tensions with China, a major importer. There are expectations that farmers will harvest a considerable amount of crops. US and Chinese officials agreed earlier this week to seek an extension of the 90-day tariff pause. However, the demand for soybeans from China may diminish during the peak marketing season later this year as record imports and tepid demand from animal feed producers have led to increased tofu inventories domestically at the start of 2025.
Additionally, CBOT Soymeal Futures reached a low contract point, and Soyoil futures have retreated from their recent highs. In other news regarding demand, Bangladesh has approved the acquisition of about 220,000 tonnes of US wheat, aiming to ease trade tensions, according to officials in Dhaka. CBOT wheat finished down 6 cents at $5.23-3/4 per bushel, while KC wheat saw a rise. CBOT corn closed up 1-1/4 cents at $4.12-1/4, buoyed by short covering and technical purchases, according to traders. There remains strong Asian demand for corn. The USDA is set to release weekly data on US grain and soybean export sales on Thursday. Traders anticipate that the agency will increase its US corn yield estimates in the monthly crop report due on August 12, already adjusting yields above the latest estimate of 181 bushels per acre.
