The continued lack of confirmation of additional Chinese purchases sent soybean futures sharply lower on Thursday.
Soybean futures had been buoyed in recent days by optimism about a possible U.S.-China trade agreement and ideas China would make more purchases of American soybeans. However, the market seemed to lose patience today, triggering the biggest slide since late November. Soybeans were further undermined by an undated estimate of the 2018-19 Brazilian soybean crop from government statistics agency, Conab. The agency pegged the crop at 118.8 million tonnes, down from 120.1 million in December but still on the high end of expectations, given recent hot, dry weather. March soybeans fell 17 ¼ cents to $9.06 ¾ and November lost 14 ½ cents to $9.48.
Corn was lower, weighed down by the losses in soybeans and the evaporating optimism around Chinese demand. Additional pressure came from domestic corn production estimates from the Brazil and Argentina governments that were both higher today compared to the previous forecast. March corn lost 5 ¾ cents to $3.76 ¼ and December was down a nickel at $3.99.
Wheat lost ground as the U.S. was left out of an Egyptian tender on Wednesday, mainly due to a freight disadvantage. A higher U.S. dollar and general selling in the grain complex added to the pressure on wheat. March Chicago wheat ended 6 ¼ cents lower at $5.13 ¾, March Kansas City lost 6 ¾ cents to $4.98 ¾ and March Minneapolis dropped 6 ½ cents to $5.64.
Live cattle futures were higher today. Lean hogs were mixed.
Source: DePutter Publishing Ltd.
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