SOYB - Corn slumps to eight-month low after China cancels purchase

2023-04-24 17:54:06 ET

Corn futures on the Chicago Board of Trade fell to an eight-month low Monday after China canceled 327K the purchase of 327K metric tons of U.S. corn that were set to be delivered in the 2022-23 marketing year.

Traders said the cancellations, which also helped lower wheat and soybean futures to one-month lows, highlighted concerns about weak demand for U.S. agriculture exports due to massive harvests in Brazil.

Wheat futures fell sharply despite cold weather in U.S. growing areas during the weekend and continued threats from Russia to leave the Black Sea grain deal.

CBOT corn ( C_1:COM ) for July delivery closed -1.2% to $6.07 3/4 per bushel, July wheat ( W_1:COM ) settled -2.3% to $6.57 3/4 per bushel, and July soybeans ( S_1:COM ) finished -1% to $14.35 1/4 per bushel.

ETFs: ( NYSEARCA: CORN ), ( WEAT ), ( SOYB ), ( DBA ), ( MOO )

In a separate report , the U.S. Department of Agriculture said weekly corn export inspections tumbled to 913.8K metric tons from 1.23M tons a week earlier, soybean export inspections of 374.9K tons were near the low end of market expectations, and wheat export inspections that totaled 363.8K tons were in line with trade forecasts.

Wheat futures have been falling despite Russian threats to pull out of the Black Sea Grain Initiative after May 18 unless the deal is revised to help Russian grain and fertilizer exports .

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