Tuesday, 01 September 2015 16:33
PARIS/SINGAPORE: Chicago soybean futures eased on Tuesday, snapping three sessions of gains, following a better-than-expected rating for US crops and as equity and commodity markets slipped on renewed concerns about a faltering Chinese economy.
US corn edged lower in step with soybeans, while wheat inched higher with support from a softer dollar to recover from a three-month low linked to export competition in a well-supplied international market.
The Chicago Board of Trade’s most-active soybean contract fell 0.5 percent to $ 8.83-1/2 a bushel by 1059 GMT, having closed higher in the previous three sessions.
Corn gave up 0.7 percent to $ 3.72-1/2 a bushel and wheat added 0.4 percent at $ 4.86-3/4 a bushel.
Share prices in Asia and Europe fell while commodity markets also slid as concerns about China were reignited by surveys showing its manufacturing sector shrinking at the fastest pace in three years and its services sector also cooling.
Fears of a broader slowdown in the world economy were also fanned by a sharp drop in South Korean exports last month and comments by the head of the International Monetary Fund saying global growth was likely to be weaker than had been expected just a few months ago.
“Worries regarding economic growth in Asia remain and continue to pressure commodities prices,” French consultancy Agritel said in a note.
China is the world’s largest importer of soybeans, making the oilseed market sensitive to macroeconomic sentiment about the Asian country.
Soybean prices were also curbed by a US Department of Agriculture crop progress report, released after the market close on Monday, which pegged 63 percent of the soybean crop at good to excellent, unchanged from last week and contrary to market expectations of a slight decline.
The crop rating eased concern about dry conditions in part of the US Midwest, although forecasts calling for warm and mostly dry weather this week could underpin the soybean market.
The corn crop was rated 68 percent good to excellent, down one point from the previous week and matching the average trade estimate.
“Corn and soybean markets are coming under pressure as US crops are just doing fine and very large supplies from the Midwest will flood the market,” said Kaname Gokon of brokerage Okato Shoji in Tokyo.
Soybeans found some support in signs of export demand after prices touched six-year lows a week ago.
The USDA said on Monday that private exporters reported a sale of 125,000 tonnes of soybeans to unknown destinations for delivery in the 2015/16 crop year, the fourth flash sale since Aug. 24.
