Chicago soybean futures hit their lowest level in nearly four years on Thursday, pressured by favorable crop weather in the U.S. Midwest. Meanwhile, wheat prices rose slightly, buoyed by strong global demand.
The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 0.6% to $10.34-3/4 a bushel, after reaching $10.31-3/4, its lowest level since October 2020. Analysts believe that U.S. soybean crops benefited from the remnants of Hurricane Beryl, which brought showers to dry areas of the eastern Midwest crop belt. Additional rainfall over the weekend and forecasts for milder temperatures this week have further improved the crop outlook.
Soybean prices also faced pressure from a smaller-than-expected U.S. crushing pace in June, based on data from the National Oilseed Processors Association (NOPA).
In contrast, wheat prices rose slightly, up 0.1% to $5.39-1/2 a bushel. The wheat market is rebounding amid a flurry of global export deals, with Algeria’s state grains agency and Egypt’s state buyer making significant purchases. Ukraine’s grain exports in the 2024/25 season have also increased compared to the previous year.
Corn prices also eased, down 0.6% to $4.09-1/4 a bushel.
The divergent trends in the grain markets reflect the impact of weather conditions and global trade dynamics on commodity prices. While soybean prices have been pressured by favorable crop weather, wheat has seen support from strong global demand, highlighting the complex factors influencing agricultural commodity markets.