Soybeans set for fourth weekly gain on China demand, US weather concerns

BEIJING: Chicago soybeans dipped on Friday but remained on track for a fourth consecutive weekly gain, supported by Chinese purchases of US soybeans and concerns over hot, dry weather in key US growing areas. The most-active soybean contract on the Chicago Board of Trade (CBOT) edged 0. 06% lower at $13. 15-1/2 a bushel by 0222 GMT, but hovered near its highest level in nearly three years. The contract has climbed 2. 12% for the week. China has continued purchases of US soybeans after a meeting between the countries’ leaders in May reaffirmed Beijing’s commitment to buy 25 million metric tons a year through 2028. The US Department of Agriculture said exporters sold 192, 000 metric tons of soybeans to China for delivery in the 2026/27 marketing year. The United States and China are expected to announce measures on agriculture and non-tariff barriers during Chinese President Xi Jinping’s visit to Washington this month, US Trade Representative Jamieson Greer said on Thursday. Investors are looking for indications that China may reduce tariffs on US agricultural products, which could pave the way for economically viable purchases beyond soybeans. Corn fell 0. 09% to $5. 40-1/4 a bushel but was up 0. 7% for the week, putting it on track for a fourth consecutive weekly gain. Prices were supported by lower expectations for US harvest yields and persistent risks to Black Sea trade. “We expect (the Black Sea disruptions) to gain increasing market focus as the peak export window for Black Sea corn, beginning in October, approaches, particularly given Ukraine’s roughly 10-11% share of global corn exports, ” said BMI, a unit of Fitch Solutions, in a note. “Importantly, we believe the implications of any continued disruptions are amplified by a less comfortable supply backdrop. ” Wheat was flat at $7. 54-1/4 a bushel after traders took profits in the previous session following comments by Russian President Vladimir Putin that a peace agreement to end the war in Ukraine remained possible. The grain was down 3. 8% for the week. The USDA is scheduled to release updated crop estimates on September 11. Commodity funds were net sellers of CBOT wheat and corn, traders said on Thursday.

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