FX.co ★ Soybeans Retreat from 2-Month High

Soybean futures slipped below $12 per bushel, retreating from a two-month high hit on July 15, as improving weather conditions across the US Midwest offset unexpectedly strong export demand. The USDA reported net new-crop soybean sales of 1.769 million metric tons for the week ended July 9, far exceeding market expectations, with China accounting for more than 1 million tons. The agency had also recently confirmed several large soybean purchases by China through its daily reporting system, underscoring solid demand from the world's largest importer.

Even so, forecasts calling for cooler temperatures and increased rainfall in key growing regions brightened production prospects, encouraging investors to take profits following the latest rally. Elsewhere, crude oil prices held firm amid intensifying conflict in the Middle East and the presence of a US naval blockade in the Strait of Hormuz.