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Soybeans Extend Losing Streak As China’s African Swine Fever Worsens

Summary:
Soybean futures are sliding for the fifth consecutive trading session on Tuesday as the selloff in the broader commodities continues. Soybean prices are slumping ahead of the US Department of Agriculture’s (USDA) incoming annual US planting intentions and quarterly grain stocks reports on Wednesday. But concerns of a resurgence of the African Swine Flu have weighed tremendously on the soybean market. May soybean futures tumbled %excerpt%.22, or 1.58%, to ,371.00 per bushel at 17:05 GMT on Tuesday on the Chicago Board of Trade (CBoT). Soybean prices have dropped about 1.5% this month, paring their year-to-date gains to below 5%. Over the last 12 months, soybean has climbed more than 55%. Over the last month, there have been reported outbreaks of the African swine fever throughout China’s

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Soybean futures are sliding for the fifth consecutive trading session on Tuesday as the selloff in the broader commodities continues. Soybean prices are slumping ahead of the US Department of Agriculture’s (USDA) incoming annual US planting intentions and quarterly grain stocks reports on Wednesday. But concerns of a resurgence of the African Swine Flu have weighed tremendously on the soybean market.

May soybean futures tumbled $0.22, or 1.58%, to $1,371.00 per bushel at 17:05 GMT on Tuesday on the Chicago Board of Trade (CBoT). Soybean prices have dropped about 1.5% this month, paring their year-to-date gains to below 5%. Over the last 12 months, soybean has climbed more than 55%.

Over the last month, there have been reported outbreaks of the African swine fever throughout China’s enormous hog herd, impacting soymeal that is used for animal feed. In 2018 and 2019, the country’s hog supply was cut in half, resulting in a significant drop in soybean demand. Although central authorities had anticipated hog stocks to return to pre-crisis levels, investors fear that another explosion in cases is imminent.

This has put pressure on prices.

In other industry news, the Ministry of Agriculture reported that Argentine farmers had sold 12.45 million tons from their 2020–2021 marketing season inventories. This is slower than the 17.45 million tons the country sold in the previous marketing year.

Buenos Aires also reported that farmers sold 19.6 million tons of corn, 1.5 million tons fewer than the same time a year ago. The country’s wheat sales have totaled 11.33 million tons, down about one-third from last season.

New data from the USDA’s Foreign Agricultural Service (FAS) confirmed that Indonesia’s output has dropped in the 2021–2022 marketing year. In total, production is forecast to come in at 425,000 tons, down from 475,000 tons from 2019–2022. The government had planned to boost output by 500,000 tons, but the Ministry of Agriculture’s funding mechanisms, from loan programs to private investment, have failed to achieve their objectives.

A surging greenback has negatively affected soybean prices. The US Dollar Index (DXY), which gauges the greenback against a basket of currencies, topped 93.00 on Tuesday. In March, the DXY has rallied nearly 3%, bringing its year-to-date gain to nearly 4%. A stronger buck is bad for commodities priced in dollars because it makes it more expensive for foreign investors to purchase.

In other agricultural markets, May corn futures shed $0.0775, or 1.42%, to $5.39 per pound. May wheat futures declined $0.135, or 2.19%, to $6.0325 a bushel. May coffee futures jumped $0.002, or 0.16%, to $1.228 per pound.

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Published under: Soybean

Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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