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Soybean and Corn Fall to Multi‑Month Lows on USDA Revisions and Fund Selling

Chicago futures slid as larger South American crop estimates, improved U.S. weather, heavy fund position liquidation, and weak Chinese buying cut demand and tightened risk perceptions.

Overview

  • In mid‑June Chicago soybean July futures dropped to about US$409 per tonne and corn hit roughly eight‑month lows as traders recalibrated supply expectations.
  • The USDA and Brazil’s Conab raised South American output estimates while the USDA boosted its global corn stock outlook, reinforcing a bearish supply picture for markets.
  • Large speculative funds sharply reduced long positions in soy, corn and wheat, amplifying price moves beyond what fundamentals alone would suggest.
  • Argentine producers accelerated soybean sales in May to roughly 4.63 million tonnes but then pulled back in early June after the price collapse, creating a pause in farmer selling.
  • Domestic Rosario cash soybean prices have shown localized firmness tied to currency and buyer behavior, which may limit immediate exports and keep local selling decisions disconnected from Chicago levels.