US soybean prices fell on Monday, stepping back from a recent rise that pushed them to multi-month highs. The main reasons were profit-taking by traders and an increasing supply from Brazil’s soybean harvest, which is putting downward pressure on global prices.
On the Chicago Board of Trade, the March soybean contract dropped from last week’s high of around $11.37 per bushel. Prices had jumped earlier after hints that China might buy more U.S. soybeans, which are a major export for American farmers.
However, China has not yet made large purchases. Brazilian soybeans are cheaper and more available, especially during their harvest season. This is making Chinese buyers prefer Brazilian soybeans over US supplies.
Brazil is expecting a record soybean crop this year, with strong exports already underway. These large supplies are reducing the need for China to buy more from the US, even with recent diplomatic talks encouraging sales.
US soybeans are still more expensive than Brazilian ones, which makes them less attractive for Chinese buyers, even though some small purchases have been made.
Other crops like corn and wheat also saw slight price drops, as there were no new factors to push prices higher.
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