Soybean Prices Tumble Amid China's Big Buy, Wheat Complex Rises

The soybean market saw selling pressure this week, pushing prices down on fund and technical selling. However, China's purchase of another 132,000 tons of new crop U.S. soybeans ahead of the open was a notable development. The country also bought 49 million bushels of new crop sales last week, primarily to China and unknown destinations. Old crop sales were above average at 11.1 million bushels, with Egypt and Japan leading the way.

Crop development weather forecasts for the first half of August look favorable, but the second half outlook is questionable. The trade is taking this with a grain of salt and waiting to see what develops. In contrast, corn prices were mixed, with nearby contracts down and deferred months up, adjusting spreads. New crop corn export sales were up on the week at 41.8 million bushels, primarily to unknown destinations and Mexico.

The wheat complex was higher on fund and technical buying this week. The trade continues to monitor Black Sea exports and the potential for a bump to U.S. sales. Several major private and state firms in Russia have lowered their export outlooks for at least July due to the ongoing war's impact on movement through that key waterway.