U.S. soybean futures slipped on Tuesday, retreating from a 16-month high reached the previous day, as traders awaited confirmation of Chinese purchases following last week’s trade truce between Washington and Beijing.
The most-active January soybean contract on the Chicago Board of Trade closed down 12-3/4 cents at $11.21-1/2 per bushel, after hitting $11.35-3/4 on Monday. December corn fell 2-3/4 cents to $4.31-1/2 per bushel, while December wheat rose 6-3/4 cents to $5.50-1/4, reaching a three-month peak.
Soybeans retreated amid profit-taking, with traders monitoring for fresh Chinese bookings. The White House has stated that China is expected to purchase millions of metric tons of U.S. soybeans under the recent agreement, including an initial 12 million tons to be booked by the end of December. However, no significant purchases have yet been confirmed, and some Chinese importers have reportedly favored lower-priced Brazilian cargoes.
“The market was overextended to the upside. I think some backing and filling was probably warranted without any bullish news today,” said Sherman Newlin, analyst at Risk Management Commodities.
Corn futures faced downward pressure after brokerage StoneX slightly raised its U.S. corn yield forecast, offsetting expectations of declining yields. Broad declines in crude oil, metals, and Wall Street equities also contributed to bearish sentiment in grains.
Wheat, in contrast, held firm, supported by ongoing reports of Chinese interest in U.S. supplies, prompting investors to cover short positions. Open interest in CBOT wheat futures has been decreasing since mid-October as traders liquidate shorts, even though analysts caution that fundamentals in the wheat market remain largely unchanged.
