Soybean prices in Chicago have fallen for three consecutive sessions, hitting their lowest level in nearly a week. This decline is attributed to abundant Brazilian supplies and concerns about demand from China, the leading importer of soybeans.
The overall decline in the soybean market has also influenced corn and wheat prices, both of which have seen a decrease amid a broader downturn in stock markets. One Singapore-based grains trader noted that the ample soybean supply from South America poses competition for U.S. beans, suggesting a potential slowdown in demand from China may further exacerbate this situation.
As of 0308 GMT, the most-active soybean contract on the Chicago Board of Trade (CBOT) fell by 0.2% to $10.12-1/2 per bushel, having earlier dipped to $10.10, the lowest price since March 5. Wheat prices fell 0.8% to $5.58 per bushel, while corn declined by 0.2% to $4.71 per bushel.
Recent economic data from China revealed that the country’s consumer price index in February dropped at the fastest rate in 13 months, intensifying worries about soybean demand. Market participants are awaiting the U.S. Department of Agriculture’s monthly supply and demand report, which is expected to provide insights into trade policies affecting grain and soybean forecasts.
Meanwhile, Russian wheat export prices have continued to fall for the second consecutive week but remain less competitive compared to European grains. Additionally, concerns about drought conditions in U.S. and Russian crop regions persist, particularly in the southern plains where moisture is critical for hard red wheat crops.
Despite these challenges, India’s farm ministry forecasts a record wheat production of 115.4 million metric tons in 2025, driven by increased planting of high-yielding seed varieties. Commodity funds were reported to be net buyers of corn and wheat but net sellers of soybean and related products on Monday.