Chicago soybean futures drop by more than 6% per week in the midst of renewed trade frictions

The most active corn contract for December delivery fell 18.25 cents a week, or 4.89%, to $ 3.5475 a bushel. The September wheat supply declined 18.25 cents, or 3.54%, to $ 4.97 a bushel. November soybeans fell 60.25 cents, or 6.74%, to $ 8.3425 a bushel during the week.

Corn dropped by more than 18 cents during the week as the sale of funds was largely related to the weakness of the soybean complex. The month of July closed at $ 3.30 a bushel to close at the end of 2016.

Despite lower prices, US and global grain balances have gradually tightened due to the strong demand and lower harvests. Large herds of hogs and cattle are recording strong demand for domestic fodder, while the US ethanol industry is achieving healthy margins of nearly 15 cents per gallon.

United States wheat futures fell as soybean futures declined due to reduced US demand from China and growth in US stocks.

However, world wheat production of the world's major exporters fell by almost 30 million tonnes from last year and Black Sea prices are starting to be taken into account. The US Department of Agriculture (USDA) has estimated the 2018 Russian wheat harvest at 67 million tonnes against 85 million tonnes last year.

The Russian Minister of Agriculture even reduced his crop estimate on Friday to 64.4 million tons. Analysts estimate that according to early harvest data, the harvest could decline to 61.5 million tonnes. And there is still a risk for spring wheat yield if the 2018 growing season ends in a timely manner.

The fact is that US wheat export demand could increase when stocks of wheat from the Black Sea and the EU will be depleted due to the decline of the Australian crop.

Soybean sales continued over the past week to reach the lowest level since 2008. US demand for crushing and export continues at an unprecedented pace, but the biggest buyer of soy in the world. users are living content on a necessary basis.

The USDA has weighed in their best estimates for US and global soybean trade for the coming year, and has reduced forecasts for US exports. This change was widely anticipated.

Even with the reduction in Chinese trade, analysts believe the soybean market is undervalued. A trade resolution or a USDA plan for price support would send CBOT futures sharply higher.