Volatility roiled the commodity grain futures markets on Monday, as uncertainty in the US weather forecast supported corn and the growing tensions in the US-China trade war weighed on soyabeans. Wheat futures ended the day up on technical buying, traders said. China's Commerce Ministry said that Chinese companies have stopped buying US agricultural products, and that China will not rule out imposing import tariffs on US farm products that were bought after August 3.
Traders said the news about China halting purchases - along with a weaker Brazilian currency, potentially making South American supplies more attractive to oilseed importers - dragged on soyabean futures for much of the day. The most active Chicago Board of Trade (CBOT) soyabean contract touched to the lowest price since June 12 in midday trading, after finishing last week down more than 3%. The contract settled Monday up 1/4 cent at $8.68-3/4 a bushel.
The China development reverberated in hog futures, with Chicago Mercantile Exchange October lean hog futures swinging nearly limit-up and -down in the same trading session. The most active CBOT corn contract settled the day up 5-1/4 cents at $4.14-3/4 a bushel. CBOT most active wheat contract closed the day up 3-3/4 cents at $4.94-1/2 a bushel.