Chicago Board of Trade (CBOT) agricultural commodities closed sharply lower on Monday as U.S.-China trade tensions took their toll.
The most active corn contract for July delivery fell 5.5 cents, or 1.35 percent to settle at 4.0075 dollars per bushel. July wheat delivery went down 14.75 cents, or 2.8 percent to close at 5.115 dollars per bushel. July soybeans were down 25.25 cents, or 2.44 percent to settle at 10.115 dollars per bushel.
CBOT futures, especially soybeans, posted big losses as very limited progress was reported during a high-level meeting in Beijing last week. Concerns are growing among traders and farmers that the trade spat between the U.S. and China will continue.
"The U.S. and China trade dispute is still alive. It seems that the standoff continuously slow down a lot of the exports." said Virginia McGathey with McGathey Commodities.
Meanwhile, experts with the AgResource company have estimated that the lack of Chinese demand for U.S. soybeans will put some 4-4.5 million metric tons of old crop U.S. soybean sales at risk.
CBOT corn and wheat followed soybean losses with U.S. wheat noncompetitive in the world marketplace, as the dollar strengthened to its highest level in 2018.