Chicago soybean futures fell on Monday, weighed down by trade uncertainty, sluggish demand and favourbale weather in the Midwest.

Corn dropped on prospects of a large harvest, while wheat edged lower on ample global supply.

FUNDAMENTALS

* The most-active soybean contract on the Chicago Board of Trade (CBOT) declined 0.78% to $10.13 per bushel by 0105 GMT.

* Corn slipped 0.3% to $4.17-6/8 a bushel. Wheat dropped 0.09% to $5.37-6/8 a bushel.

* Soybean and corn prices came under pressure from expectations of a large production and beneficial weather in the Midwest crop belt.

* Weak export demand added to the pressure on soybeans, with recent weekly U.S. export sales hovering at the lower end of trade estimates.

* Wheat softened further as ongoing Northern Hemisphere harvests bolstered global supply, keeping prices in check.

* In trade developments, the U.S. struck a framework trade agreement with the European Union 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.

* The South China Morning Post reported on Sunday that Beijing and Washington were expected to extend their tariff truce by another three months at trade talks in Stockholm beginning on Monday.

* Traders were also taking positions ahead of the Trump administration’s August 1 tariff deadline.

* In China, the agriculture ministry last Friday warned that high temperatures and drought might persist in some parts of the country and have adverse impacts on autumn grain production.

* Commodity funds were net sellers of CBOT soyoil, wheat, soybean, corn and soymeal futures contracts on Friday, traders said.

MARKET NEWS

* Global stocks rose and the euro firmed after a trade agreement between the United States and the EU lifted sentiment and provided clarity in a pivotal week headlined by the Federal Reserve and the Bank of Japan policy meetings.
Source: Reuters