USDA reports more American soybean sales to China

Analysts doubt China will meet year-end soy buying target

Global wheat supplies considered ample

CHICAGO, – U.S. soybean futures fell on Wednesday after climbing to their highest level since June 2024 in the previous session, with traders watching to see whether a wave of Chinese purchases would continue after the trade truce between Beijing and Washington.

Corn and wheat futures also weakened. The soybean market has retreated after rallying on Monday, when Reuters reported that Chinese state-owned grain trader COFCO bought around 840,000 metric tons of U.S. soy for shipment in December and January. This was China’s largest purchase since at least January and the most significant since a summit between U.S. President Donald Trump and President Xi Jinping in late October. The U.S. Department of Agriculture confirmed that China purchased 792,000 tons of American beans on Tuesday and reported sales of another 330,000 tons of U.S. soybeans to China on Wednesday.

DOUBTS ABOUT CHINA TARGET Last month, Washington said China would buy 12 million tons of U.S. soybeans by year-end. Some analysts have doubted China will meet the deadline, though. Recent deals remain well below that volume.

“This 12 million tons is probably not going to happen by the end of the year,” said Jim Gerlach, president of A/C Trading in Indiana.

The most-active soybean contract on the Chicago Board of Trade was down 16-1/2 cents at $11.37 a bushel by 12:30 p.m. CST , compared with Tuesday’s 17-month peak of $11.69-1/2.

Some farmer selling and profit-taking by investors likely helped pressure the market, Argus analysts said in a note.

“We saw bullish momentum on Monday as China bought U.S. cargoes, but the market is a bit overbought right now,” said one Singapore-based trader.

In the wheat market, futures were recently buoyed by hopes that China could turn to U.S. supplies as part of its purchases of American farm goods. However, traders said the outlook for prices remained fundamentally bearish given ample supply in major production zones. Ukraine will not restrict wheat exports in 2025/26 due to a larger harvest and slower shipments at the start of the season, the country’s deputy economy minister told Reuters.

CBOT March wheat fell 10 cents to $5.49 a bushel after rising on Tuesday to a July high of $5.63-1/4. CBOT March corn dropped 8-3/4 cents to $4.40-3/4 a bushel.

This article was generated from an automated news agency feed without modifications to text.