U.S. soybean futures slid on Thursday, extending losses from earlier in the week despite reports of continued Chinese purchases of American soybeans. Traders have grown cautious as the pace of Chinese buying remains insufficient to meet the ambitious targets set under the U.S.-China trade truce.
The U.S. Department of Agriculture confirmed that China purchased 462,000 metric tons of U.S. soybeans on Thursday, marking the third consecutive daily sale announcement. Overall this week, China has bought more than 1.5 million metric tons of American soybeans. In addition, the USDA reported a sale of 132,000 metric tons of U.S. white wheat to China.
Despite the confirmed purchases, analysts warn that China would need to accelerate its buying to meet the 12 million metric ton target pledged by Chinese and U.S. officials as part of the trade truce brokered last month. The shortfall in expected purchases has left the market cautious, with many traders hesitant to drive prices higher.
Most-active soybean futures on the Chicago Board of Trade fell 13-3/4 cents to $11.22-1/2 per bushel, pulling back from Tuesday’s peak of $11.69-1/2, the highest since June 2024. Competition from cheaper Brazilian soybeans adds further pressure on U.S. exports, limiting the upside for domestic prices. Analysts note that even positive news regarding Chinese purchases may not be enough to spark a sustained rally if volumes remain below expectations.
Other grain markets also faced downward pressure. CBOT March corn futures declined 3-3/4 cents to $4.37-3/4 per bushel, while March wheat futures fell 8-3/4 cents to $5.40-3/4 per bushel. Global market dynamics are contributing to these declines, as the International Grains Council raised forecasts for wheat and corn production, increasing supply expectations. A stronger U.S. dollar further weighed on grain exports by making American crops more expensive for international buyers.
In addition, Saudi Arabia’s state grains agency issued an international tender for approximately 300,000 metric tons of hard milling wheat, a development that also influences global wheat prices. Traders are closely monitoring geopolitical developments as well, including U.S. proposals aimed at ending the war between Russia and Ukraine, which could affect grain flows from the Black Sea region.
Overall, the soybean market remains under pressure as traders weigh the pace of Chinese purchases against global supply trends and competing international markets, leaving futures lower despite recent headline-grabbing sales.
