01.07.202602:50:35UTC+00Soybeans Remain Near 4-Month Lows

Soybean futures held below $11.20 per bushel, hovering near their lowest levels since early February, after the USDA forecast larger stockpiles and a sharp increase in US plantings. In its quarterly report, the USDA pegged June 1 soybean inventories at 1.061 billion bushels, above market expectations, and projected annual planted area at 85.365 million acres, broadly in line with estimates, reinforcing expectations of abundant supplies. Additional downward pressure stemmed from a stronger US dollar, as growing expectations of interest rate hikes this year made American commodities more expensive for overseas buyers. At the same time, traders continued to track hot weather across the US Midwest, which is expected to stress soybean crops in the short term before cooler conditions arrive later in the week. Investors also remained focused on Chinese demand, watching for signs of further purchases in the wake of the May summit between Presidents Donald Trump and Xi Jinping.