Investing.com – Soybean futures dropped to one-week low on Tuesday, as mounting concerns over the global economy dampened the outlook for demand as trading resumed following the U.S. Labor Day holiday.
On the Chicago Mercantile Exchange, soybean futures for November delivery traded at USD14.2988 a bushel during European morning trade, tumbling 1.05%.
It earlier fell as much as 1.75% to trade at USD14.2288 a bushel, the lowest price since August 29.
With trading on the CME shut on Monday, agricultural traders got their first chance to react to Friday’s dismal jobs report, which showed the U.S. economy added zero jobs in August.
The report fuelled concerns that the world’s largest economy is sliding back into a recession, overshadowing ongoing worries over tightening global supplies.
Agribusiness financial service provider Rabobank said in a report earlier that, “The grain market is being torn between the darkening global economic outlook and extremely tight coarse grain supplies.”
Easing concerns over a disruption to U.S. supplies also contributed to losses, as soybean crops in the southern U.S. states received much-needed rain after Tropical Storm Lee made landfall in the region on Sunday.
Soybean prices remained supported after leading crop forecaster FCStone last week projected a U.S. soy crop of 3.03 billion bushels, less than the U.S. Department of Agriculture’s estimate of 3.056 billion and last year’s harvest of 3.329 billion.
Soybean prices rallied to a 29-month high of USD14.5600 a bushel on August 31 following the lower crop outlook.
The U.S. is both the world’s largest soybean producing nation and the world’s largest exporter of the grain.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery slumped 0.72% to trade at USD7.5438 a bushel, while wheat for December delivery dropped 1.34% to trade at USD7.6625 a bushel.
Later in the day, the USDA was to publish its weekly crop progress report, a day later than usual because of the Labor Day holiday.
On the Chicago Mercantile Exchange, soybean futures for November delivery traded at USD14.2988 a bushel during European morning trade, tumbling 1.05%.
It earlier fell as much as 1.75% to trade at USD14.2288 a bushel, the lowest price since August 29.
With trading on the CME shut on Monday, agricultural traders got their first chance to react to Friday’s dismal jobs report, which showed the U.S. economy added zero jobs in August.
The report fuelled concerns that the world’s largest economy is sliding back into a recession, overshadowing ongoing worries over tightening global supplies.
Agribusiness financial service provider Rabobank said in a report earlier that, “The grain market is being torn between the darkening global economic outlook and extremely tight coarse grain supplies.”
Easing concerns over a disruption to U.S. supplies also contributed to losses, as soybean crops in the southern U.S. states received much-needed rain after Tropical Storm Lee made landfall in the region on Sunday.
Soybean prices remained supported after leading crop forecaster FCStone last week projected a U.S. soy crop of 3.03 billion bushels, less than the U.S. Department of Agriculture’s estimate of 3.056 billion and last year’s harvest of 3.329 billion.
Soybean prices rallied to a 29-month high of USD14.5600 a bushel on August 31 following the lower crop outlook.
The U.S. is both the world’s largest soybean producing nation and the world’s largest exporter of the grain.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery slumped 0.72% to trade at USD7.5438 a bushel, while wheat for December delivery dropped 1.34% to trade at USD7.6625 a bushel.
Later in the day, the USDA was to publish its weekly crop progress report, a day later than usual because of the Labor Day holiday.