Chicago soybeans extend losses as US Midwest harvest expands

Chicago soybeans experienced further declines on Tuesday, marking a second consecutive day of losses. This downturn occurred as harvest activities surged across the US Midwest, following a period of dry weather. The primary driver behind this trend was the anticipation of the US Department of Agriculture's weekly crop progress report, which was set to be released later that day.

The most actively traded soybean contract on the Chicago Board of Trade (CBOT) slipped by 0.87%, settling at $12.76-1/2 a bushel by 0325 GMT. Similarly, basis bids for corn and soybeans shipped by barge to the US Gulf Coast also dipped on Monday, as the expanding Midwest harvest led to an increase in fresh grain supplies, which were directed towards marketing channels feeding the Gulf region.

Traders noted that this shift was creating a significant flow of fresh grain, impacting prices positively. Meanwhile, wheat prices followed a similar downward trend, falling by 0.78% to $6.67 a bushel. On a separate note, Russia's wheat export prices saw an uptick last week, largely due to a strengthening market in the Black Sea region.

However, this increase came with a caveat, as analysts pointed out that the rise in grain shipments was helping stabilize domestic prices. IKAR, a local consultancy firm, revised its 2026 grain crop forecast for Russia downwards, predicting a 137 million metric ton crop, a decline from the previous estimate of 138 million tons. This forecast included a reduction in wheat production to 88 million metric tons from the earlier 88.5 million tons.

Additionally, APK-Inform, another agriculture consultancy, adjusted its 2026 wheat harvest estimate for Ukraine upwards to 25.5 million tons from 25 million tons. However, they simultaneously reduced their grain export estimates by 6.5% to 31.7 million tons. The decline in corn prices also followed a similar pattern, slipping by 0.98% to $4.80-1/4 a bushel.

South Korean feedmaker Nonghyup Feed Inc, the South Korea Feed Leaders Committee, and Taiwan's MFIG purchasing group all announced international tenders for the purchase of animal feed corn, according to European traders who reported on Monday.