Soybean prices dropped to a two-month low due to the US harvest

On Monday, the soybean market showed a decline following the preceding rally. The factor of seasonal pressure named by a Singapore trader is associated with the gathering pace of the harvesting campaign in the USA, while there are few circumstances supporting prices.

The most active soybean contract at the Chicago Board of Trade (CBOT) lost 1.2% and dropped to $12.41-1/4 per bushel (as of 0338 GMT). Earlier in the session, quotes reached their weakest level since August 26. A week earlier, prices for the crop were supported by strong export demand and higher crude oil prices, while the USDA reported on Thursday net export sales of US soybeans for the week ending October 15 at 2.8 million metric tons amid purchases by China.

The decline in quotes also affected other crops. Corn lost 1.1% and dropped to $4.51 per bushel, while wheat fell in price by 0.4% to $6.22-3/4 per bushel, although the fall in wheat was restrained by ongoing supply disruptions from the Black Sea. Corn is also under pressure from the progress of the harvesting campaign in the USA, which is capable of increasing large reserves, and in the wheat segment last week, liquidation of positions by investment funds was recorded due to hopes for the resumption of Black Sea trade amid US-led diplomacy.

An additional impact on agricultural markets was exerted by oil prices, which declined after reaching nearly six-month highs late last week, although current attacks on Saudi Arabia maintain concerns regarding supplies. Oil prices often set the direction for agricultural markets due to the growing use of grains and oilseeds for biofuel production.