Trade tensions weigh on U.S. soybeans as corn rises over weather damage
Chicago Board of Trade (CBOT) soybean futures managed to settle in positive territory on Monday following a choppy session amid rising U.S.-China trade tensions.
Meanwhile, concerns that unfavorable weather conditions have affected corn crops boosted the grain futures.
The most active corn contract for December delivery was up 5.25 cents, or 1.28 percent to 4.1475 U.S. dollars per bushel. September wheat was up 3.75 cents, or 0.76 percent to 4.945 dollars per bushel. November soybeans were up 0.25 cent, or 0.03 percent to 8.6875 U.S. dollars per bushel.
China's Ministry of Commerce said on Monday that related Chinese companies have halted purchases of U.S. farm produce. The move came after the U.S. plan to impose additional 10-percent tariffs on 300 billion U.S. dollars' worth of Chinese imports, which seriously violated the consensus reached by the two heads of state in Osaka, Japan.
The news pressured CBOT soybean futures, which opened sharply lower on Monday. However, bargain buying helped recover the losses, said market watchers.
Unfavorable weather conditions, especially flooding in the spring, have led to the late planting of U.S. corn. Worries about corn condition supported its prices, said market analysts.
The latest crop progress report released on Monday afternoon confirmed that 57 percent of the U.S. corn was rated as good or excellent as of August 4, one percentage point lower than the previous week, and much lower than last year's 71 percent.