Soybeans, Corn Prices Decline Amid Favorable Crop Conditions

The soybean market on the Chicago Board of Trade experienced a decline due to falling crude oil prices and favorable crop conditions. The U.S. Department of Agriculture reported that 63% of the country's soybean crop is in good or excellent condition, steady from last week. In contrast, China's reliance on U.S. soybeans has decreased significantly since Trump's first term, with only 20% coming from the U.S. in 2024 compared to 41% in 2016.

The USDA also reported private export sales of 132,000 tonnes of soybeans to China and an additional 488,000-tonne sale to China along with 136,150 tonnes to unknown destinations. StoneX raised its Brazilian soybean production forecast by 500,000 tonnes at 183.1 million.

Corn prices also fell on Tuesday despite worsening crop conditions, with the USDA reporting that 61% of the corn crop is in good or excellent condition, down two points from last week. The USDA reported that 466.71 million bushels of corn were used for ethanol production in June, up 4.4% from a year earlier.

Chicago soft wheat had the heaviest losses among the three major U.S. varieties on Tuesday due to improved crop conditions and a South Korean mill purchasing 50,000 tonnes of U.S. wheat overnight.