U.S. soybeans fall despite more Chinese purchases

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Chicago Board of Trade (CBOT) soybean futures continued to fall, though more export sales to China were reported on Friday.

Private exporters reported to the U.S. Department of Agriculture (USDA) sales of 300,000 metric tons of soybeans for delivery to China during the 2018/2019 marketing year, following another 1,130,000 metric tons to the same destination on Thursday.

However, new sales to China failed to boost the soybean prices, amid large inventories and a rising U.S. dollar, said market watchers.

"The buying excitement because of the China report is really fading... and a lot of selling came in," said Virginia McGathey of McGathey Commodities.

Some analysts contributed the fall of soybeans to "buy the rumor/sell the fact" mentality.

CBOT brokers reported that funds bought 3,900 contracts of corn and 1,200 contracts of wheat, while being on both sides of the soybean market.

Higher wheat prices in global markets and demand for U.S. wheat from top grain buyer Egypt had driven up CBOT wheat futures significantly. Profit-taking on Friday dragged down the prices.

Source(s): Xinhua News Agency