US soyabean futures fell to a seven-month low on Tuesday as traders focused on demand destruction resulting from the ongoing US trade war with top global soya buyer China as well as the effects of a devastating disease in China's hog herd. Corn futures fell to contract lows, pressured by ample US and global supplies, while wheat futures steadied after recent declines.
As of 11:40 a.m. CDT (1640 GMT), Chicago Board of Trade May soyabeans were down 15-3/4 cents at $8.61-1/4 per bushel, the contract's lowest since Sept. 19. CBOT May corn was down 4 cents at $3.50-3/4 a bushel after hitting a contract low at $3.50-1/4, and CBOT May wheat was up 1-1/4 cents at $4.37 a bushel.
Soyabeans led the way down as traders considered bearish fundamentals. African swine fever, which is fatal to pigs but harmless in humans, has spread to every province on the Chinese mainland since its initial detection in August 2018, raising concern about a drop in Chinese demand for feedstuffs including soya and corn.
The US Department of Agriculture has projected that US soyabean stocks at the end of the 2018/19 marketing year will reach 895 million bushels, more than double the previous year. CBOT corn futures fell to contract lows in the front five contracts. US farmers are holding a sizable amount of un-priced grain that has yet to hit the market, Vaclavik said.
Others noted pressure on prices from optimism that US farmers would be able to plant corn this spring despite wet conditions that have delayed field work. Wheat futures firmed slightly, with the CBOT May contract up after falling nearly 2% a day earlier. But K.C. hard red winter wheat futures set contract lows.
The USDA on Monday rated 62 percent of the US winter wheat crop in good to excellent condition, up from 60 percent a week earlier. A year ago, the USDA rated just 31 percent of the crop as good to excellent.