Soybean Prices Fall with Crude Oil and Favorable Crop Conditions

The price of soybeans on the Chicago Board of Trade continued its downward trend on Tuesday due to declining crude oil prices and favorable crop progress. The U.S. Department of Agriculture reported that 63% of the country's soybean crop was rated good to excellent as of August 2, with blooming advancing eight points at 88% and pod setting up 15 points at 62%. Additionally, a cargo vessel being struck off Oman's coast did not seem to have a significant impact on prices.

United States Treasury Secretary Scott Bessent told CNBC that he expects a new deal to reopen the Strait of Hormuz 'today or tomorrow'. The USDA reported private export sales of 132,000 tonnes of soybeans to China on Tuesday, following an additional 488,000-tonne sale to China and 136,150 tonnes to unknown destinations. StoneX raised its Brazilian soybean production forecast by 500,000 tonnes at 183.1 million.

Corn prices also dipped on Tuesday despite worsening crop conditions. The USDA reported the corn crop to be 61% good to excellent, down two points from the previous week. In addition, 90% of the crop was in the silking stage, up 12 points from last week and up three points from the five-year average.

Chicago soft wheat had the heaviest losses among the three major U.S. varieties on Tuesday, partly due to improved crop conditions. The USDA reported spring wheat at 55% good to excellent, up two points from the previous week and up seven points from last year.