GRAINS-Soy futures set April low on good US crop weather, slow China demand

By Tom Polansek

CHICAGO, July 31 (Reuters) - Chicago Board of Trade soybean futures fell on Thursday to their lowest level since April on beneficial U.S. crop weather and poor demand from China, analysts said.

Soymeal and wheat futures set contract lows, under pressure from plentiful supplies.

The losses were the latest blows to U.S. farmers who have struggled with low crop prices and U.S. President Donald Trump's tariff disputes.

Farmers are expected to harvest a record U.S. corn crop this autumn and a large soybean crop following favorable weather.

They are grappling with lackluster export demand for wheat, said Don Roose, president of brokerage U.S. Commodities.

"There's adequate supplies in the world market," he said.

CBOT November soybeans SX25 were down 6-1/4 cents at $9.89-1/2 a bushel by 10:45 a.m. CDT (1545 GMT).

September soymeal SMU25 set a low of $262.50 per short ton before turning higher. The contract was last up $1.90 at $266.70 per short ton.

"Weather forecasts remain extremely bearish heading into the key soybean development month of August," StoneX said in a note. "China is still notably absent from the U.S. soybean market with a month to go until the 2025/26 marketing season."

China, the world's biggest soybean importer, is facing an August 12 deadline to reach a durable tariff agreement with Trump's administration. The United States believes it has the makings of a trade deal but it is "not 100% done," Treasury Secretary Scott Bessent said.

China's appetite for soybeans is likely to weaken during the peak U.S. marketing season later this year, trade sources have said.

The U.S. Department of Agriculture reported weekly U.S. soybean export sales of 349,200 metric tons for 2024/25, which exceeded analysts' estimates. Sales of 429,500 metric tons for 2025/26 were within expectations.

Weekly U.S. wheat export sales of 592,200 metric tons for 2025/26 also met expectations.

CBOT September wheat futures WU25 set a low of $5.16-3/4 per bushel before trimming losses. The contract was last down 1-1/2 cents at $5.22-1/4 per bushel.

CBOT December corn CZ25 edged up 3/4 cent to $4.13 a bushel on technical buying and short covering, traders said.