Soybeans Remain Near 4-Month Lows

Soybean futures remained below $11.2 per bushel, trading close to their lowest level since early February after the USDA projected larger stockpiles and a sharp increase in US plantings. In its quarterly report, the USDA estimated June 1 soybean stocks at 1.061 billion bushels, exceeding market expectations, while forecasting annual planted acreage at 85.365 million acres, in line with estimates, reinforcing expectations of ample supplies. Additional pressure came from a stronger dollar amid mounting expectations on US interest rate hikes this year, making US commodities more expensive for foreign buyers. Meanwhile, markets continued to monitor hot weather across the US Midwest, which is expected to stress soybean crops in the near term before cooler conditions later this week. Investors also remained focused on Chinese demand, watching for signs of additional purchases following the May summit between Presidents Donald Trump and Xi Jinping.