US Soybean, Corn Prices Rebound Partially From Monday’s Losses

Soybean and corn prices have rebounded partially from Monday's losses, driven by short covering and technical buying. The US Department of Agriculture's national good to excellent rating for soybeans was down 3% on the week, a key factor traders are watching closely as August approaches. This month is crucial for development in many major growing areas.

The uptick in demand from China is solid ahead of an expected visit from President Xi in September, largely due to more competitive US pricing against Brazil. Tariffs continue to be a sticking point. A Chinese state grain storage company is set to auction over half a million tons of soybeans purchased between 2022 and 2025, freeing up space for yet-to-be-shipped US soybeans.

Corn prices also bounced back, shrugging off another drop in crude oil, as technical signals, crop condition concerns, and solid overall demand took hold. The trade is monitoring harvest activity in Argentina and Brazil, along with Europe, where the European Union grows corn but several nations may need to import more due to hot, dry weather.