Soybean futures fell to around $11.10 per bushel, extending losses to a new four-month low, weighed down by favorable US crop conditions and the continued absence of fresh Chinese demand for US supplies. Traders had been expecting stronger export interest after China announced in May that it would purchase $17 billion worth of US agricultural goods annually, on top of the 25 million metric tons of soybeans already contracted. However, the lack of visible Chinese buying has disappointed the market.
At the same time, benign weather across the US Midwest is bolstering expectations for robust crop development, while the prospect of a sharp increase in planted acreage is fueling forecasts for a record soybean harvest. The USDA’s weekly crop ratings are projected to improve from the previous week’s 66% good-to-excellent reading, and planting progress had reached 87% as of May 31. Outside the US, Argentina’s soybean harvest was 91.7% complete, while soaring fertilizer prices continued to squeeze Brazilian producers.
