China's hog production, soymeal cuts pressure Chicago soybean futures

CHICAGO, July 23 (Reuters) - Chicago Board of Trade soybean futures closed lower on Wednesday, after soymeal futures slumped on news that China would cut back its hog production, reduce soymeal use and hunt for meal substitutions in feed rations, traders said.

• China will reduce the number of breeding sows, control the slaughter weight of hogs and curb new production capacity as part of broader efforts to prevent sharp price drops, the agriculture ministry said on Wednesday.

• CBOT's most-active November soybeans SX25 settled down 2-3/4 cents at $10.22-3/4 a bushel.

• CBOT's August soymeal futures SMQ25 ended $1.80 lower to settle at $272 per short ton. Most-active December soymeal futures SMZ25 fell $1.20, closing at $285.60 per short ton.

• CBOT's August soyoil BOQ25 closed up 0.51 cent at 56.14 cents per pound, while December soyoil futures BOZ25 rose 0.47 cent at 55.86 cents per pound.

• Earlier in the session, soybean futures gained support on weakness in the U.S. dollar and hopes that trade deals may boost demand for U.S. exports, traders said. .DXY

• A U.S.-Japan trade deal, a U.S.-Philippines trade deal, negotiations over a U.S.-European Union deal and U.S.-China talks next week are adding to hopes that President Donald Trump will get foreign buyers to step up U.S. farm goods purchases.

• While a decline in U.S. crop ratings on Monday has carried some support over to the soy market, beneficial crop weather has continued to weigh on soy futures.

• Some traders said they are closely watching for signs of crop stress from the flurry of rains. Wet or flooded soils can result in soybean plants having root health damage and impact yields, particularly when the plants are filling their pods. Typically, soybean plants begin filling pods in the U.S. Midwest in late July and into August.