Chicago soybeans dip as traders track Sino-US trade talks
BEIJING: Chicago soybean futures fell on Tuesday as traders weighed US-China trade developments, and concerns that President Donald Trump's proposed EPA funding cuts could reduce biofuel demand.
The most-active soybean contract on the Chicago Board of Trade (CBOT) slipped 0.29% to $10.43 a bushel, as of 0207 GMT.
Markets are watching for signs of a thaw in US-China trade tensions, with China's commerce ministry saying on Friday that it is 'evaluating' a US offer to hold talks on tariffs imposed during the Trump administration.
Trump's proposed Environmental Protection Agency (EPA) funding cuts have unsettled traders, who worry it could reduce demand for biofuels made from soy and other oils, weighing on soybean prices.
Traders are also positioning ahead of next Monday's United States Department of Agriculture supply and demand report.
'Most expectations are for 'more of the same' in the sense that there will be about the same amount of wheat around, slightly more corn and slightly less beans - this has led to some initial pressure on the market' said Ole Houe, director of advisory services at IKON Commodities in Sydney.
Houe added that signs are emerging that US grain is becoming affordable enough to spark demand, and he anticipates the markets will stabilize at current levels.
Soybeans fall as traders await US-China trade talks
The USDA's weekly crop progress report showed soybean planting was 30%, above the five-year average of 23%, but just shy of the 31% forecast.
About 51% of US winter wheat rated good-to-excellent, the highest for this time of the year since 2020. US corn planting reached 40%, ahead of the five-year average of 39% but slightly below expectations of 41%.
Wheat fell for a second consecutive session, dropping 0.24% to $5.30 a bushel, while corn rose 0.22% to $4.55 a bushel, after three days of losses.
'Corn was supported by some profit taking from the fall in prices the day before and by wheat/corn spreading,' Houe said. In Brazil, crop consultancy Celeres raised its 2024/25 total corn production forecast to 135.4 million metric tons, up from 134.6 million tons.
Commodity funds were net sellers of Chicago Board of Trade corn, soybean, wheat, soyoil and soymeal futures contracts on Monday, traders said.
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