Soybeans fell to a one-week low to head for the longest slump since July amid concern that demand will decrease in China, the world’s biggest importer.
Futures for July delivery lost as much as 0.4 percent to $14.65 a bushel on the Chicago Board of Trade, the lowest level for a most-active contract since April 15. Prices were at $14.655 by 12:55 p.m. in Singapore, declining for a fourth straight session.
The pace of soybean exports from the U.S. and South America will probably slow through the end of the season as Chinese demand declines because of ample stockpiles, according to Oil World. There are reports that China will soon auction 3 million metric tons of state reserves, which equates to roughly one-third of total inventories, Commonwealth Bank of Australia said in a note today.
The auction “could have negative consequences for future import demand,” said Luke Mathews, the bank’s commodity strategist in Sydney. “Worries about near-term oilseed demand in China continue to simmer within the market.”
Imports by China, which buys more than 60 percent of globally traded beans, may rise 15 percent to 69 million tons in the year through Sept. 30 from a year earlier, according to the U.S. Department of Agriculture. The U.S. is the biggest exporter after Brazil, while Argentina ranks third, USDA data show.
Combined exports from Brazil, Argentina and the U.S. will be 45.09 million tons from April through September, less than the 46.86 million tons shipped in the same period last year, Hamburg-based researcher Oil World said last week. Exports will slow after 50.73 million tons were shipped in the first half of the season that started Oct. 1, it said.
Corn for July delivery fell 0.3 percent to $5.0125 a bushel. Wheat dropped 0.4 percent to $6.765 a bushel.
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