US soybean and corn prices remained steady on Thursday due to tepid demand for grains and other goods. Traders are weighing concerns about lacklustre demand against dry weather conditions in the Midwest that could curb crop prospects. The most-active soybean contract on the Chicago Board of Trade (CBOT) held firm at $13.89 a bushel. Meanwhile, wheat lost 0.24% to $6.28-3/4 a bushel, and corn edged up 0.16% to $6.08-3/4 a bushel. The Rosario grains exchange in Argentina cut its estimate for soybean harvest – the country’s most important cash crop, to 5% below its previous forecast.
Australia is expecting a decision from China over the next two weeks that will settle a dispute over barley tariffs. European Union soybean imports this season had reached 12.33 million metric tons by June 11, down 12% from 13.95 million a year earlier, data published by the European Commission showed on Tuesday. Dozens of flights at an international airport in the northern Mexican state of Sinaloa were suspended on Wednesday as farmers protested and demanded guaranteed prices for grains.
In other news, the Federal Reserve of America left interest rates unchanged on Wednesday but indicated that borrowing costs may still need to rise by as much as half a percentage point by the end of this year. Data from China regarding Industrial Output and Retail Sales for May are also expected. The Philly Fed Business Index for June, Retail Sales for May, and Industrial Production for May from the US are due to be released.
The Kremlin warned that Russia’s goodwill in renewing the Black Sea grain deal could not last indefinitely. This comes after President Vladimir Putin announced that Moscow was considering withdrawing from the accord. ECB President Christine Lagarde is expected to speak to reporters following the Governing Council’s monetary policy meeting.
Despite concerns about lacklustre demand for grains and goods, the prices of soybean and corn remained steady due to dry weather conditions in the Midwest. While several countries are engaged in trade disputes that threaten imports and exports, the markets will keep a close eye on data releases and political developments to determine how prices will be affected.
