Band Christopher Walljasper
CHICAGO, August 15 (Reuters) – Chicago soy fto one On Monday, under pressure from beneficial rainfall forecasts in parts of the U.S. Midwest and unexpected data from China suggesting a drop in demand for US agricultural products from the country.
The People’s Bank of China cut key interest rates on weaker-than-expected economic data from the world’s second-largest economy, raising fears of a global recession.
U.S. weather forecasts for rain in the coming weeks could help parched soybean crops, adding pressure to markets.
Corn and wheat prices followed lower.
Chicago Board of Trade’s most active soybean contract Sv1fell 42 cents to $14.12-1/4 a bushelafter falling to $13.86 earlier in the session, its lowest since Aug. 4.
The most active CBOT corn contract CV1 tear down 14 cents to $6.28-1/4 per bushel, while CBOT wheat Wv1 lost 4-3/4 cents to $8.17-3/4 a bushel.
A contraction in the Chinese economy, the biggest buyer of U.S. soybeans, could dampen demand for U.S. commodities, said Arlan Suderman, chief commodity economist at StoneX.
“China flouted their request,” he said. ” I don’t think it is as poor as they indicate.”
MMeanwhile, U.S. exporters prepared 744,571 tons of soybeans for inspection in the week ended Aug. 11, down 14.55% from the previous week, according to the U.S. Department of Agriculture.
Corn export inspections were down 3.1% and wheat exports by 41.29%, the USDA said.
Corn and wheat futures prices were also pressured by fears of cuts in China, although recent heat in the US Midwest may have reduced the yield of developing corn crops.
“There is some rain in the drier parts of the maize belt. On the maize, it is probably too late to do anything good, but a little rain would definitely help the bean yield,” said Chuck Shelby, president of Risk Management Commodities.
U.S. corn crop conditions exceeded consensus analyst expectations by 53%, with the USDA rating 57% of the crop as good to excellent as of August 14. Soy was rated 58% good to excellent, according to analysts. estimates, while spring wheat was pegged at 64% good to excellent, one percentage point higher than estimates.
(Reporting by Christopher Walljasper Additional reporting by Nigel Hunt Editing by Mark Potter and Richard Chang)
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