Chicago Agriculture Commodities Finished Lower
Chicago Board of Trade (CBOT) agriculture commodities closed lower Monday on massive selling triggered by concerns over trade tensions between China and the US.
CBOT grain prices dove as crop-favorable rain fell over the weekend in the US Midwest.
Brokers estimated that funds sold 6,500 contracts of Soybeans, 5,200 contracts of Wheat and 12,000 contracts of Corn.
Following a 2-day economic and trade consultations between high-ranking Chinese and US officials in Beijing, the Chinaside issued a statement Sunday.
“To implement the consensus reached in Washington, the two sides have had good communication in various areas such as agriculture and energy, and have made positive and concrete progress while relevant details are yet to be confirmed by both sides,” the statement said.
“All economic and trade outcomes of the talks will not take effect if the USside imposes any trade sanctions including raising tariffs,” the statement added.
The lack of assurance that the US would not raise tariffs against Chinese goods left CBOT traders disappointed, according to grain market observers.
As a result, CBOT Soybean, a Key agriculture product the US exports to China, fall sharply.
Corn futures also suffered double-digit losses as rain fell over the weekend in the Midwest areas and temperature rose, favorable for Corn growing.
Monday in the grains
The most active Corn contract for July delivery fell 10.75c, or 2.75% to settle at 3.8075 bu.
July Wheat delivery went down 18c, or 3.44% to close at 5.0525 bu.
July Soybean were down 19.5c, or 1.91% to settle at 10.0175 bu.
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