Last Friday, Chicago soybean futures declined after experiencing two weeks of stock gains. Analysts expect the industry values to improve once China would hold its end as indicated in the China-US trade deal by purchasing more US beans.
The data showed that wheat experienced a weekly loss due to global supply shortages on the market. The Chicago Board of Trade being the most active soybean contract was, however, up by 1.3 percent. Its biggest weekly gain was seen in late December of 2019.
The market trading for soybeans, however, was down by 0.3 percent selling at 8.3 USD for a quarter of a bushel as of Friday. Similarly, wheat was also down by 2.6 percent this week along with corn that experienced a decline of 1.1 percent.
It was also revealed that US soybean exports to China reached a record low in nearly two months since Chinese economic troubles escalated. According to the US Department of Agriculture, China was perceived to be the world's top buyer of its soybean products.
Despite the losses, it was revealed that the market experts an increase in export demand for US agricultural products. The said phase one of the China-US trade deal would take effect 30 days after its signing last January 15, 2020.
According to a Singapore-based trader, China incurred a delay in fulfilling its commitment to the trade deal due to present economic challenges. However, the trader said that it would hold its end of the bargain and would manifest its interest in fulfilling the deal in a market meeting.
A weekly government report showed that about 69,009 tonnes of soybean products were exported to China last February 6, 2020. The transaction was reported to be the lowest one between US exporters and Chinese buyers. In comparison, 67,113 tonnes of soybean products were sold at the same time last year.
It was also revealed that wheat markets are still wary about the shortage of world supplies despite experiencing lower production from exporting countries. It was then forecasted that wheat prices in member states of the European Union (EU) would decrease due to a bumper harvest in Russia. According to consulting firm Strategie Grains, ample feed grains supplies would offset the fall of wheat output in the EU.
Last Wednesday, the Rosario grains exchange in Argentina also increased its forecast for this season's soybean and corn harvests. The expectation was said to be caused by favorable rains expected this time of the year.
The forecasts showed that there would be an increase of one million tonnes to 55 million tonnes of soybean production while there might be a 50 million-tonne increase for corn.