Warm wet weather in the US heartland and fears over trade woes sent Chicago Board of Trade soyabean futures sliding for a fifth straight session on Friday, and hit the steepest weekly decline in 10 months. Chicago Board of Trade July soyabeans fell 5 cents to $9.69-1/4 a bushel after hitting $9.62-1/2, the contract's lowest point since August 21, 2017. The contract was down 5.1 percent in the week.
Soyameal and soya oil contract prices also ended the day lower. Rainy conditions across the heart of the Midwest farm belt pressured grain prices this week as recently planted corn and soyabean crops are off to a strong start to the growing season. The US Agriculture Department's crop condition ratings are among the highest on record for both corn and soyabeans.
However, some investors held off on making significant moves in their positions, because they wanted to see what trade-related news would come out of the G7 summit. On Friday, top US allies scrambled to keep a Group of Seven nations summit from veering off track as President Donald Trump vowed to deal with "unfair trade practices" by Canada and the European Union.
Traders say they also are turning their attention towards next Tuesday's monthly crop forecasts from the US Department of Agriculture. Several investors said they were not expecting much market movement as a result of the report, as USDA would not be addressing the full extent of new-crop concerns due to mounting trade tensions with key US export partners, such as Mexico, Canada and China. "The June report is typically a 'let's pass the buck' kind of report," one trader said.