- Ample global wheat supply pressures CBOT wheat prices
- Corn futures firm on export demand despite wheat pressure
- Soybean futures slump amid concerns over China’s demand
Chicago | Reuters – Chicago Board of Trade wheat futures fell for a fourth consecutive session on Wednesday, setting a new eight-week low, as ample supply and progress in peace talks between Russia and Ukraine triggered selling by speculative investors.
Corn futures firmed on export demand, though pressure from the wheat market continued to weigh on prices. Cheaper wheat can compete with corn demand in feed markets, market analysts said.
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Soybean futures ended lower for a fourth straight session, as traders adjusted some of their positions ahead of the holidays – despite news of China buying more soybeans, market analysts said.
The U.S. Department of Agriculture reported sales of 323,000 metric tons of U.S. soybeans for the 2025/26 marketing year – with 198,000 tons to China and 125,000 tons for “unknown destinations.” U.S. farmers and traders have closely watched China’s demand for American agricultural goods since President Donald Trump and Chinese leader Xi Jinping struck a trade truce in late October.
“The question we’re all wondering is, ‘What will China do when the political buying of U.S. soybeans ends?'” said Dan Basse, president of AgResource Co in Chicago. “Is the 12 million tons the cliff? Or will there be more?”
A partial recovery in crude oil prices also failed to lift soybeans, amid concern that China’s demand for U.S. crops could be capped. Brent crude LCOc1 fell below $60 a barrel this week for the first time since May, putting downward pressure on prices of biofuels and the feedstocks used to make them, including soy.
On Wednesday, the CBOT’s most-active corn contract Cv1 settled up 4 cents at $4.40-1/2 per bushel. Soybeans Sv1 ended down 4-1/2 cents at $10.58-1/4 per bushel, the lowest since October 23.
CBOT wheat Wv1 fell 3-1/4 cents to close at $5.06-1/4 per bushel. Earlier, the contract declined to $5.04 a bushel during the session – its lowest level since October 23.
Exporters cancelled sales of 132,000 metric tons of U.S. white wheat to China, the USDA said on Wednesday. While the news was seen as bearish, traders said the cancellation did not significantly impact the global supply balance sheet, as world supplies were ample.
Southern Hemisphere producers are pouring wheat into an already well-supplied market. The Rosario Grains Exchange last week raised its production estimate for Argentina to a record-high 27.7 million metric tons, and Australia is on track for its third-biggest harvest.
-Additional reporting by Peter Hobson in Canberra and Sybille de La Hamaide in Paris.
