* Soy costs fall as U.S.-China talks make little progress
* Soybeans contact seven-week low
* Climate could assist corn and soybean development (Provides closing costs)
By Barbara Smith
CHICAGO, July 31 (Reuters) – Chicago corn futures had a dismal shut on Wednesday and touched a two-month low as analysts mentioned U.S. crop climate was not threatening, whereas wheat and soybean costs additionally eased.
The Chicago Board of Commerce’s (CBOT) most-active corn contract settled down 11 cents, or 2.7%, at $4.10 a bushel. The December contract traded to its lowest value since Could 24.
The climate outlook for the Midwest is mostly favorable, with barely below-normal temperatures ultimate for reproductive corn and soybeans, though pockets of unfavorable dryness persist within the corn belt, based on a each day U.S. Division of Agriculture (USDA) climate report.
“There’s simply nothing new to report on in relation to the grain markets,” mentioned Joe Christopher, merchandiser with Crossroads Co-op. “The market is simply drained at this level.”
He added that the market is ready for the USDA to launch its acreage report with updates on what number of corn and soybean acres have been planted, after heavy rains delayed plantings this spring.
“We may see some surprises with the August 12th USDA report,” mentioned Christopher.
U.S. and Chinese language negotiators wrapped up a spherical of commerce talks on Wednesday with out seen indicators of progress.
The White Home and China’s Commerce Ministry every described the conferences in Shanghai as constructive however provided differing views about Chinese language purchases of U.S. agricultural items.
China, the world’s largest soybean importer, imposed retaliatory tariffs on shipments from the USA as a part of the nations’ commerce struggle final yr, slowing American exports.
“China goes to want to purchase quite a lot of cargos for the market to really transfer,” Christopher mentioned.
U.S. President Donald Trump on Tuesday warned China towards ready out his first time period to finalize any commerce deal, saying if he wins re-election within the November 2020 presidential contest, the result may very well be no settlement or a worse one.
Probably the most energetic CBOT soybean contract settled down 15-1/Four cents, or 1.8%, at $8.81-1/2 a bushel. November soybeans hit their lowest value since June 11.
CBOT’s most energetic wheat contract was down 10 cents, or 2.2%, at $4.87-1/Four a bushel and set its lowest value in additional than every week.
A warmth wave within the European Union’s important wheat producing area final week helped farmers make speedy progress with harvesting, with some crop forecasts being elevated. (Reporting by Barbara Smith in Chicago; extra reporting by Nigel Hunt in London, Naveen Thukral in Singapore; modifying by Gopakumar Warrier, Mark Potter and Tom Brown)