Soybean prices experienced significant downward pressure on Monday, falling more than 1% to reach a two-month low. According to reports from The Hindu BusinessLine, the most-active soybean contract on the Chicago Board of Trade (CBOT) lost 1.2% at $12.41-1/4 a bushel as of 0338 GMT, having hit its weakest level since August 26 earlier in the session. A Singapore-based trader noted that "we are seeing seasonal pressure on soybeans as US harvest is gathering pace," with limited supportive factors for prices. However, soybeans proved comparatively resilient as Chinese buying accelerated into the week, offsetting part of the pressure from advancing US harvest and heavy fund liquidation.
The agricultural commodity decline extended beyond soybeans, with corn giving up 1.1% to $4.51 a bushel and wheat edging 0.4% lower to 6.22-3/4 a bushel. As reported by The Hindu BusinessLine, the wheat market registered liquidation by investment funds last week as US-led diplomacy aimed at ending Russia's war with Ukraine raised hopes of revival of Black Sea grain trade. However, attacks have continued since the talks, including a drone strike that sank a cargo ship off the Romanian Black Sea coast. The market never received a clean signal of normalization, with weak US demand and expanding speculative shorts dominating price action.
The decline was attributed to multiple factors including supplies from a record US harvest entering the market and lower crude oil prices. According to The Hindu BusinessLine, oil prices fell after surging to near six-month highs late last week, although ongoing attacks on Saudi Arabia kept supply concerns in focus. Last week, soybean prices were supported by strong export demand and higher crude oil prices, with crude oil often providing direction to agricultural markets due to growing use of grains and oilseeds in biofuels.
The US Department of Agriculture reported net export sales of US soybeans at 2.8 million metric tons in the week ended October 15, near the top end of market estimates. As reported by The Hindu BusinessLine, a run of Chinese purchases boosted volumes, providing some support despite the broader market decline. Weekly 2026/27 export sales reached 2.841 MMT, more than four times the previous week and 170.89% above the same week last year, with China accounting for 2.179 MMT of the total. By Friday, accumulated soybean sales had reached 26.2 MMT, 81% above last year, equal to 57% of the USDA projection and ahead of the five-year average sales pace of 48%.
