The Chicago soybean complex eased on Wednesday, as crude oil prices declined and amid prospects of higher supplies.
The July soybean contract on the Chicago Board of Trade dropped 0.30% to $11.82 per bushel in early trade, reaching its lowest in almost two weeks. The July soybean oil contract was down 0.32% to 74.12 cents per pound.
Favorable weather conditions in the US Midwest benefited soybean planting and raised expectations of a
bumper harvest, according to analysts.
US agricultural data revealed that soybean acreage under cultivation and spread across 18 states is at 79% as of May 24, up from 75% a year ago. That compares with 68% in the last five years.
The pace, however, falls below market expectations of 82%, according to price reporting agency MySteel.
South American supplies also continued to pressure US soybeans, as Brazil concluded its harvest and Argentina considered reducing its soybean export duties.
Key buyer China continued to purchase Brazilian cargoes even after holding trade talks with the US, according to ADM Investor Services, which noted that US prices are "simply not competitive" with a 10% tariff remaining in place.
For soybean oil, offers for Brazilian and Argentine cargoes were also more competitive compared with US cargoes, according to agricultural trading firm GrainTrade.
For the current marketing period through May 21, soybean export inspections in the US remained much lower at 35.1 million metric tons, compared with the previous season's 44.4 mmt, industry data showed.
The lack of confirmation from China that it will buy additional US soybeans will continue to weigh on export figures and soybean prices.
"In the short term, the market will continue to focus on the details of US-China trade policy implementation and US soybean growing conditions," MySteel said.
Ethanol prices in the US also fell, with the June contract on the Nymex dropping 1.23% to $2.01 per gallon on Tuesday.