Wheat futures turned higher after a bout of profit-taking on Friday following last week’s three-year high, as severe weather conditions in major exporting zones continued to preoccupy the market.
Corn was little changed, with investors starting to turn their attention towards monthly U.S. government crop forecasts later this week that will give a fresh indication of harvest prospects.
“The soybean price is under pressure this morning due to growing fears that the trade dispute with China could develop into a prolonged trade war,” Commerzbank commodity analysts said in a note.
After China proposed retaliatory tariffs on $60 billion worth of U.S. goods on Friday, state media on Monday launched a personal attack on U.S. President Donald Trump, casting further doubt on the prospect of a negotiated settlement to the trade standoff.
Beijing imposed in July a 25 percent tariff on U.S. soybeans, the most valuable U.S. agricultural export to China, as part of retaliatory duties against Washington.
This has already curbed U.S. soybean flows to China and led some forecasters to scale back projections of U.S. exports.
Argentina expects to export significant amounts of soymeal to China after its next harvest in May, a top agriculture ministry official said on Friday.
The Chicago Board of Trade most-active soybean contract was down 0.9 percent at $8.94 a bushel by 1203 GMT, while CBOT corn ticked down 0.1 percent to $3.84-1/2 a bushel.
Chicago wheat was up 0.9 percent at $5.61 a bushel, after initially extending Friday’s pullback.
The wheat contract had slipped almost 1 percent on Friday in a pause in a weather rally that had taken prices to a three-year peak of $5.93 on Thursday.
The wheat market remained supported by extreme weather in a clutch of key exporting regions worldwide, although Ukraine’s denial of reports it would restrict exports has curbed the rally.
Heatwaves and drought have withered crops in northern Europe, while dryness followed by torrential rain has raised doubts over the size and quality of Russia’s harvest.
Concern about parched conditions in Australia was adding to concern, although the east coast received some rain on Monday.
Europe is also set for showers and cooler weather later this week as heatwave conditions subside.
Grain markets are awaiting Friday’s August crop report from the U.S. Department of Agriculture (USDA) for more supply pointers, notably for U.S. corn and soybean crops and global wheat production.
Source:Agriculture.com
Source:Agriculture.com
