Chicago soybeans drop on abundant global supply, wheat and corn also fall
Corn was pressured by expectations of a large U.S. harvest, with favourable weather expected in the Midwest crop belt. Wheat was weakened as accelerating harvests across the Northern Hemisphere boosted global supply prospects.
Chicago Board of Trade most-active soybeans were down 0.6% to $10.14 a bushel at 0935 GMT. Corn fell 0.8% to $3.96 a bushel, wheat dropped 0.9% to $5.33-1/2 a bushel.
"Soybeans continue to be under pressure from the large U.S. and global crops coming our way soon. It's hard for that market to get any real lift for the next few months," said Ole Houe of IKON Commodities in Sydney.
Weak export demand further weighed on soybeans, with recent weekly U.S. export sales disappointing.
On tariffs, the United States and European Union struck a framework trade agreement on Sunday, imposing a 15% import tariff on most EU goods and averting a bigger trade war between the two allies that account for almost a third of global trade.
'Tariff elimination of some agricultural products was mentioned in the U.S./EU deal but the lack of any detail means no judgement can be made on it,' one German trader said. 'But there is overall relief that a damaging U.S./EU trade war has been avoided.'
Wheat is suffering from the double burden of low demand and big supplies on the way from harvests in the U.S., EU and Black Sea, the German trader added.
'There are hardly any wheat purchase tenders in the market as the week starts,' he said. 'Russian farmers have been unwilling sellers of new crop. But as the Russian harvest expands farmers may be compelled to sell more for export, they cannot store everything.'
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