Concerns about weaker Chinese demand push soybean price to 6½-year low

Agriculture have also been unable to entirely resist the downward spiral in China. The price of US soybeans for instance has shed more than 2% this morning and, measured against the most-active futures contract, has fallen to a 6½-year low of less than 870 US cents per bushel. Prices of corn and wheat are also falling significantly in its wake, wheat dropping by 2% to 488 US cents per bushel as the new week gets underway. Corn is down by 1.5% to 360 US cents per bushel, notes Commerzbank. Fears that Chinese demand for soybeans could abate is weighing on prices. 

After all, China is by far the largest importer of soybeans and thus largely determines global demand. What is more, the supply of soybeans from South America is becoming more attractive due to the weak Brazilian real, with the result that it may well be given preference over US soybeans, says Commerzbank. The latest depreciation of the Chinese yuan could have much the same effect.