Soybeans ease from three-month peak, wheat hits lowest since 2020 on supply pressure

BEIJING/PARIS: Chicago soybeans edged down on Tuesday after hitting a three-month high in the previous session following a temporary truce in the U.S.-China trade war and a bullish U.S. Department of Agriculture report.

Wheat futures extended losses to their lowest since 2020 as higher than expected forecast of U.S. stocks and a sharp improvement in U.S. crop conditions added to supply pressure.

Corn also fell.

The most-active CBOT soybean contract was down 0.2% at $10.68-3/4 a bushel by 1206 GMT, consolidating below Monday’s three-month peak of $10.74-3/4.

Broader financial markets were also more subdued on Tuesday as investors assessed whether Monday’s agreement announced by Washington and Beijing to temporarily reduce reciprocal tariffs would lead to a lasting improvement in trade relations.

Monday’s deal buoyed the soybean market, in which China dominates global imports, by boosting hopes for revived Chinese demand for U.S. farm goods.

Later in the day, the USDA’s supply and demand report estimated 2025-26 U.S. soybean ending stocks at 295 million bushels, lower than analysts’ 362 million bushels estimate.

Wheat steady-down 7 cents, corn steady-down 4, soybeans steady-down 5

For 2024-25, U.S. soy stocks were pegged at 350 million bushels, below April’s forecast of 375 million bushels and analysts’ expectations of 369 million bushels.

CBOT wheat fell 1.5% to $5.07-1/2 a bushel, after earlier reaching the lowest on a continuation chart since August 2020 at $5.06-1/4. Individual delivery months for wheat set new contract lows.

The USDA projected U.S. 2025-26 wheat ending stocks above analyst estimates, contributing to a slight expected increase in global stocks.

“In the most important exporting countries, there is likely to be an increase in stocks, for which the U.S. in particular is expected to be responsible,” Commerzbank analysts said.

In a separate report issued after Monday’s close, the USDA also estimated that the condition of U.S. winter wheat crops improved sharply last week.

CBOT Corn dipped 0.8% to $4.44-1/4 per bushel.

The USDA forecast U.S. corn stocks will increase next season on the back of a bumper crop, but its stocks projections for both 2024-25 and 2025-26 were lower than the market consensus.

“Corn is trying to react to a bullish global USDA report longer term versus an increase in the U.S. corn stocks and market doing very little as they balance each other out,” said Ole Houe, director of advisory services at IKON Commodities in Sydney.