SOY/GRAINS: Soybeans Head for Biggest Monthly Slump Since 2018
Soybean futures headed for their biggest monthly drop since mid-2018 as the spreading coronavirus upends supply chains in top consumer China and crop outlooks improve in Brazil and Argentina.
Prices are down about 8% this month amid a broader commodity selloff in the wake of the virus outbreak. The spread of cases will keep many Chinese regions on extended holidays, potentially disrupting supply chains and logistics. That’s compounding disappointment over the country’s lack of buying of U.S beans since it signed a trade deal earlier this month.
In Brazil, expectations for a record harvest may expand further, according to consultant MD Commodities. Argentina may also collect a bigger-than-expected crop after beneficial rains, the Buenos Aires Grain Exchange said on Thursday.
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