U.S. agricultural futures fall sharply amid massive selling

2018-07-03 02:53:52 GMT2018-07-03 10:53:52(Beijing Time) Xinhua English

CHICAGO, July 2 (Xinhua) -- Chicago Board of Trade (CBOT) soybean futures settled much lower on Monday amid massive selling triggered by increasing trade tensions.

The corn contract for December delivery fell 12.25 cents, or 3.30 percent, to settle at 3.59 dollars per bushel. September wheat went down 21 cents, or 4.19 percent, to close at 4.8025 dollars per bushel. November soybeans were down 10.5 cents, or 1.19 percent, to settle at 8.695 dollars per bushel.

CBOT brokers said funds sold 12,000 contracts of corn, 8,000 contracts of wheat, and 5,000 contracts of soybeans.

Fund managers have been sizeable sellers of raw materials amid the hardening trade stance of the Trump administration on trade with China, the European Union, Canada and Mexico, said analysts with AgResource, a Chicago-based agricultural research firm.

"Trade wars are never positive for broad asset prices! Traders hope that logic, rational thinking come to the fore," said an AgResource commentary on Monday.

A stronger dollar is also making U.S. grains more expensive thus less competitive on international market.

Favorable weather conditions in the U.S. Midwest and profit-taking put additional pressure on the futures of corn and wheat, which had seen significant gains during the last session. 

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