Soybean prices in Chicago dipped for the second consecutive session on Thursday, influenced by ongoing uncertainties surrounding U.S.-China trade relations and favorable weather conditions in the U.S. The most actively traded soybean contract on the Chicago Board of Trade (CBOT) fell by 0.29%, reaching $10.47-4/8 per bushel as of 0420 GMT.
The decline comes in the wake of a trade truce framework between the U.S. and China that lacks concrete agricultural specifics. While President Trump expressed a degree of satisfaction regarding the deal, which aimed to stabilize the trade conflict, traders remained cautious due to the vagueness surrounding agricultural tariffs.
China, being the largest importer of U.S. soybeans, had previously implemented tariffs ranging from 10% to 15% on American agricultural products worth $21 billion. In contrast, corn prices remained stable at $4.37 per bushel despite lower pressure on the market prompted by strong production forecasts.
The U.S. Energy Information Administration (EIA) reported a record-high weekly corn-based ethanol production of 1.120 million barrels per day alongside a decrease in stockpiles, now at 23.734 million barrels—marking the lowest for this year. Meanwhile, wheat prices saw a slight recovery, rising by 0.19% to reach $5.35-2/8 per bushel after three days of losses.
The Rosario grains exchange in Argentina adjusted its wheat harvest estimate downwards for the 2025-26 season due to flooding concerns. Additionally, the Taiwan Flour Millers’ Association announced an international tender for approximately 95,450 metric tons of grade 1 milling wheat, indicating ongoing demand.
Overall, traders are preparing for the upcoming monthly supply-demand reports and weekly export sales data from the U.S. Department of Agriculture, which could further influence market dynamics.