Chicago soybeans edge lower after notching 3-year high on China demand

Chicago soybean futures slipped on Friday after reaching life-of-contract highs the previous day, driven by China's acquisition of US beans prior to the forthcoming summit between US President Donald Trump and Chinese President Xi Jinping. Wheat and corn also declined. The most actively traded soybeans on the Chicago Board of Trade dropped 0.7% to $13.23-1/4 per bushel by 0255 GMT.

CBOT wheat fell 0.9% at $7.35-1/4 per bushel, while corn lost 0.8% to $5.29-1/4 per bushel. Soybeans appreciated by 1%, wheat rose 0.2%, and corn fell 1.4% thus far this week. Soybean futures surged to their highest level in three years, fueled by Chinese demand, as China, the world's top oilseed buyer, ramped up purchases ahead of President Xi Jinping's visit to Washington later this month.

Chinese imports of US soybeans this week totaled around 1 million metric tons, traders reported to Reuters, bringing China's total US soybean acquisitions to nearly half of the 25 million tons that Beijing has pledged to buy annually through 2028. The USDA also confirmed additional Chinese purchases of US soybeans on Wednesday and Thursday.

In Brazil, the world's leading soybean producer and exporter, soy exports are projected to reach 7.74 million metric tons in September, up from 6.97 million tons in the comparable period last year, according to grain exporters union ANEC. The anticipation of the USDA supply and demand forecasts on Friday spurred profit-taking by investors who had amassed a substantial long position in wheat.

The USDA's forecasts on Friday are anticipated to reveal the impact of scorching, arid conditions this summer on US Midwest crops. Market participants are also closely monitoring Black Sea tensions and potential disruptions to grain exports in the critical grain production region. Ongoing diplomatic efforts to resolve Russia's war with Ukraine have negatively influenced prices, although fresh Russian strikes on Thursday, including one targeting a Ukrainian city that damaged a vegetable oil factory belonging to US agrifood firm Bunge, kept the focus on persistent disruptions to the vast Black Sea grain trade.