Chicago Close: Trade Deal Delays Pressure Soybeans



Reports the signing of the first phase of a U.S.-China trade deal could be delayed sent soybean futures lower on Wednesday.

U.S. President Donald Trump and Chinese leader Xi Jinping were originally expected to sign the partial agreement at the APEC summit in Chile later this month, but that plan was scuttled when the host country cancelled the gathering. Now it appears things could be delayed until December, as the two sides continue to work on put the final touches on the deal. “Any delay is obviously not a good thing,” Jim Gerlach, president of A/C Trading, told Reuters. January soybeans fell 6 ¾ cents to $9.27 ½ and new-crop November was down 4 cents at $9.67 ¼.

Corn moved lower on continued harvest pressure and tepid export demand for U.S. supplies. Weather forecasts trend mostly drier for the American Midwest over the next two weeks, which should allow good progress in the field. December corn fell 3 cents to $3.78 ¾ and new-crop December 2020 corn dropped 2 cents to $3.96 ¾.

Wheat closed mixed with some support coming from expected smaller crops in Australia and Argentina and a weaker U.S. dollar. December Chicago wheat managed a 1 ½-cent gain to $5.16 ¾, but December Kansas City slipped ¾ of a cent to $4.27 ¾ and December Minneapolis was down 2 ¾ cents at $5.23 ¼.

Live cattle and lean hog futures were both mainly lower today.

Source: DePutter Publishing Ltd.

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