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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Newer world order in Trump era — and Pakistan
Listen to article After President Donald Trump's second coming to the Oval Office, the US ways, means and ends of foreign policy are witnessing a transformation. The evolving 'Newer World Order', though dynamic and transitory, needs to be understood. Deciphering President Trump's speeches, announcements, presidential orders, tweets and utterances of last five months, it can be concluded that "trade and tariffs" are the principle means of his interstate relations philosophy. He is well focused at realising his electioneering slogan 'Make America Great Again', for which he is trying to rejuvenate the US economy, bring FDI, reinvigorate the industrial sector, create more jobs, secure US homeland against crimes and illegal immigration, save on extra expenditure made overseas, shift responsibility of defence to self-help by partners and collect more tariffs on imports to reduce taxes on American citizens. His major worry appears to be the back-breaking US debt of trillions of dollars. This approach has been well reflected in his visit to the Middle East where he was successful in securing trillions of dollars of investments and billions of dollars of sales in defence, technology and aviation sectors. Trump portrays himself as anti-war, but perhaps he is for short military showdowns, trade wars and employment of economic coercion to attain his policy ends. Manifestation of this approach was also seen during the last month's Indian aggression against Pakistan, and Pakistan's effective and successful counter offensive. He has reiterated multiple times the role played by him and the US secretary of state in brokering the ceasefire between India and Pakistan. It is inferred that, during his presidency, US interstate relations shall be increasingly woven around trade and economy, rather than security. Trump desires to go down in the history as an American President who helped stop major conflicts in the world, and took his country out of colossal debt and deficit. Trump is likely to help bring peace in the Middle East and work for 'two-state solution' to realise his dream of 'Abraham Accords'. KSA and Turkey are also playing a role in his peace efforts. Lifting of sanctions on Syria, meeting with the Syrian president and expression of hope that a deal could be reached with Iran are positive indicators. Iran is expected to be pragmatic as well. President Trump is ardently working for a ceasefire in Ukraine, and get closer to Russia — perhaps to forestall Russia and China getting into an unmanageable alliance. Though a priority, containment of China may retake shape of 'Congagemnent' during his tenure. China making great strides in high-end technology would wish to maintain pace of its comprehensive rise by avoiding conflicts and developing a good working relationship with the US. However, to protect its interests, China is expected to remain assertive in all domains. The US is likely to continue trade with China, but on more favourable terms. Important fact is that finding an alternative to high quality Chinese products on cost effective rates for US consumers in short term may not be possible. China has been a trusted ally of Pakistan. The China-Pakistan friendship bond has gained newer heights during the May 2025 Pak-India War. Pakistan's grit and tenacity and its courageous, swift, skilful, comprehensive and lethal response to the Indian aggression must have impressed the friends and foes alike. At this point in time, Pakistan and China, their people and militaries are closer than ever before. China will continue to support Pakistan unequivocally. This relationship is likely to experience stress due to the enduring US-China competition. It is important that an understanding is developed in the western capitals that for Pakistan, in the absence of any alternative, the only choice for realising ends of its comprehensive 'National Security Policy' that is predicated on geo-economics, remains the People's Republic of China. The recent China-Pakistan-Afghanistan tripartite meeting and PM Shehbaz Sharif's visit to Turkiye, Iran and Azerbaijan — aimed at conveying gratitude for their support during the Indian aggression, reaffirming the closer relation and expanding the ties to make the mutually beneficial friendship even stronger — is a step in right direction. The warm welcome and pleasant exchanges reflect mutual desires to strengthen the exiting bonds. The second tripartite meeting held between Pakistan, Turkiye and Azerbaijan at Lachin in Azerbaijan further manifests the growing understanding between Pakistan and the regional countries. The PM and his delegation also visited Tajikistan to strengthen the bilateral cooperation in multifaceted areas. Russia and Pakistan are getting closer too, which is being seen as a very positive development. Pakistan has sent delegations to various countries of the world to forge an understanding in the comity of nations to communicate Pakistan's position on perpetuating Indian arrogance and aggressiveness as against Pakistan's desire for enduring peace and stability in the region. Pakistan has been making efforts to develop good relations with all the neighbours, including India. Unfortunately, Indian intransigence remained a hurdle. The impasse seems to have been broken by the short but intense May 2025 War, imposed on Pakistan by the rash Indian leadership, and the ceasefire sought by India through the US. President Trump has expressed his willingness to help resolve the Kashmir dispute by convening a Pakistan-India meeting in some third country — something that is being considered a silver lining. The global milieu engenders quest to forge peace and enhance trade instead of war. Pakistan should continue trying to avoid conflicts and have good relations with all the countries, including India. The US president's promise of mediation must be pursued for resolution of the Kashmir dispute, reversal of Indian announcement of holding IWT in abeyance and restoration of special status of IIOJK. Very good relations with China, the US, the UK, EU, Gulf states, Turkiye, Afghanistan and Iran warrant added focus by Pakistan. Connectivity is the way forward for mutually beneficial socio-economic development and societal emancipation.
Business Recorder
5 hours ago
- Business Recorder
Rupee registers marginal decrease against US dollar
The Pakistani rupee registered marginal decline against the US dollar, depreciating 0.01% during trading on Tuesday. At close, the local currency settled at 282.21, a loss of Re0.04 against the greenback. On Thursday, the rupee settled at Rs282.17 against the US dollar. The currency market was closed from Friday to Monday on account of Eid holidays. Internationally, the US dollar firmed on Tuesday as Washington and Beijing remained locked in trade talks that left investors on edge and hesitant in placing major bets while looking ahead to the US inflation report later in the week. Top officials from the world's two largest economies sought to defuse a bitter dispute that has widened from tariffs to restrictions over rare earths, with trade talks extending to a second day in London. The talks come after US President Donald Trump and his Chinese counterpart Xi Jinping spoke by phone last week and at a crucial time for both economies, which are showing signs of strain from Trump's cascade of tariff orders since January. The lack of firm details despite positive sentiment from some officials and Trump meant the currency moves were mostly tepid. The euro eased 0.17% to $1.14 and sterling was at $1.3543. The US dollar index, which measures the US currency against six key rivals, was 0.2% higher at 99.189, but remained near six-week lows it touched last week. The index is down 8.7% this year as investors, worried about the impact of tariffs and trade tensions on the US economy and growth, flee US assets and look for alternatives. Oil prices, a key indicator of currency parity, edged up 1% to a seven-week high on Tuesday on hopes trade talks between the U.S. and China - the world's two biggest economies - will result in a deal that could support global economic growth and boost oil demand. Brent crude futures rose 81 cents, or 1.2%, to $67.85 a barrel by 11:22 a.m. EDT (1522 GMT), while U.S. West Texas Intermediate crude rose 83 cents, or 1.3%, to $66.12. Those gains pushed both crude benchmarks into technically overbought territory for the first time since early April and put Brent on track for its highest close since April 17 and WTI on track for its highest close since April 3. U.S. Commerce Secretary Howard Lutnick said trade talks with China were going well as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers. Inter-bank market rates for dollar on Tuesday BID Rs 282.21 OFFER Rs 282.40 Open-market movement In the open market, the PKR lost 19 paise for buying and remained unchanged for selling against USD, closing at 282.53 and 284.40, respectively. Against Euro, the PKR gained 26 paise for buying and 79 paise for selling, closing at 320.69 and 323.88, respectively. Against UAE Dirham, the PKR lost 8 paise for buying and 3 paise for selling, closing at 76.72 and 77.48, respectively. Against Saudi Riyal, the PKR lost 20 paise for buying and 14 paise for selling, closing at 75.00 and 75.75, respectively. Open-market rates for dollar on Tuesday BID Rs 282.53 OFFER Rs 284.40
Business Recorder
6 hours ago
- Business Recorder
European stocks flat as investors await outcome of US-China talks
European shares closed little changed on Tuesday in cautious trade as investors awaited the outcome of the second day of U.S.-China trade talks in London. The continent-wide STOXX 600 index closed unchanged for the second straight day, at 553.12 points. The two-day London meeting between the world's two economic powerhouses was still ongoing, a U.S. Treasury spokesperson said, while a separate U.S. official had said the two sides had ended direct talks. While President Donald Trump's upbeat comments on Monday about the talks had offered some hope the two countries would defuse their bitter trade dispute, the silence about any progress kept a lid on any breakout in stock markets. Any positive breakthrough in the negotiations is likely to provide relief to markets given that Trump's erratic tariff policies and the volatility of Sino-U.S. relations have already scarred both economies, dented supply chains, and cast a shadow over global growth projections. 'There's a lack of clarity on what an actual deal could be,' said Laura Cooper, head of macro credit and investment strategist at Nuveen. 'Until we see a substantial trade deal emerge, attention will be on the end of that 90-day pause and its implications if there isn't a deal in place.' The two countries are trying to revive a temporary truce reached in Geneva that had briefly lowered trade tensions and calmed markets. In European stocks, the financials index, shed 1.4%, led by a near 5% drop in UBS on investor concern that Swiss government proposals could shackle the bank with an additional $26 billion capital mandate. Defense stocks also retreated to an over one-week low. Conversely, energy stocks were the stand-out performer, boosted by higher oil prices. The healthcare sector advanced 1.2%, led by Novo Nordisk, which gained about 6% following a Financial Times report that activist hedge fund Parvus Asset Management was building a stake in the drugmaker. Vaccine makers such as AstraZeneca and Sanofi also climbed, despite the U.S. health secretary dismantling the U.S. Centers for Disease Control and Prevention's vaccine advisory committee. London's FTSE 100 flirted with a record high earlier in the session after fresh data revealed a sharp deceleration in British pay growth through April, coupled with unemployment hitting a four-year peak - strengthening the case for an interest rate cut by the Bank of England. Attention is also on a slew of key economic indicators from the region as well as the U.S., due through the week. 'With U.S. CPI data due on Wednesday, the mood could remain cautious,' said Fiona Cincotta, senior market analyst at City Index. Among other stocks, Bellway jumped 7.8% after the British homebuilder raised its forecast for full-year volume production. Shares of Aberdeen gained 6.3% after J.P. Morgan upgraded the fund manager's stock to 'overweight' from 'neutral'.
