Grains-Wheat Slides More Than 2 PCT on U.S.-China Row

July 9th, 2018


Category: Grains

( – U.S. wheat futures fell more than 2 percent on Monday as fears of a prolonged trade dispute between the United States and China whipsawed grains markets. Soybeans retreated 1 percent after jumping more than 4 percent in the previous session, while corn also slipped 1 percent.

The most active wheat futures on the Chicago Board of Trade were down 1.5 percent at $5.07-3/4 a bushel by 0512 GMT, having earlier hit a low of $5.03-1/2 a bushel. Wheat closed up 1.9 percent on Friday.

Analysts said wheat drew support late last week from soybeans, which rallied sharply despite being the most likely casualty from the ongoing Washington-Beijing trade conflict. “Wheat rallied on the back of soybeans and as those prices have fallen, wheat has followed suit,” said Andrew Woodhouse, grains analyst, Advance Trading.

The most active corn futures were down 1.1 percent at $3.69 a bushel, having closed down 1.2 percent in the previous session.

The most active soybean futures eased 1 percent to $8.85-1/2 a bushel. Soybeans rebounded on Friday after nearing a decade low, firming 4.5 percent to hit their highest since June 29 at $8.97-3/4 a bushel.

Friday’s rally in soybeans came despite expectations that China will buy less of the oilseed from the United States. Beijing’s extra 25 percent tariff on U.S. soybeans is expected to curb Chinese demand for U.S. shipments and shift more sales to Brazil, the world’s top exporter. That prospect has contributed to a five-year high in the spread between U.S. and Brazilian prices.

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