Soybean Prices Drop as Export Sales Lag Amid China’s Absence
[Stay on top of transportation news: .]
Soybean futures fell as concerns over sluggish demand for U.S. supplies prompted traders to take profits after a three-day winning streak.
Contracts for November delivery of the oilseed used in everything from chicken feed to truck fuel fell as much as 1.5% to $10.29 per bushel on the Chicago Board of Trade.
RELATED: Trump Presses China to Quadruple US Soybean Purchases
Export sales for delivery in the marketing year starting in September are at their lowest level for this time of the year since 2019, according to Department of Agriculture data compiled by Bloomberg. U.S. suppliers have so far booked shipments totaling 4.71 million metric tons for the new season, down 20% from a year earlier, the USDA said Aug. 14.
RELATED: Deere Falls as Struggling Farmers Delay Machinery Rebound
There are concerns that, without a trade deal with China, U.S. soybean exports will fall short of the USDA’s projection for the new season, according to Vinicius Ito, a director at futures and options brokerage Marex Group. The uncertainty led traders to shed bullish wagers on prices and realize profits made after the USDA trimmed its outlook for U.S. suppliers earlier this week, he added.
China, which has relied on Brazil’s record supplies for the bulk of its needs, hasn’t booked a single cargo of U.S. soybeans for the new season, according to USDA data.
Want more news? Listen to today's daily briefing belowÌýor go here for more info:
