Speculation about reduced demand tugged down soybean futures on Wednesday as the legume marked a third consecutive trading session of losses, according to Bloomberg.
Concerns are spreading about China, the globe's top consumer of soybean, canceling some orders. The legume is believed to have over-performed since early last month, which also might do its part to ward off demand for acquisitions. The Asian nation imported 4.81 million metric tons of soybeans in February, representing a lift from the 2.9 million tons it drew in during the same period of last year.
"When you have beans at $14 a bushel, it is very hard to continue to be bullish on it," director of advisory services Ole Houe with Ikon Commodities Pty Ltd. in Sydney told the media outlet on Wednesday. "The quantity of cancellations is rising by the day and that's got everybody running scared off beans."
At 8:44 a.m. on Wednesday, soybean futures dove 2.76 percent, a 39-cent loss to $13.74 per bushel.
The Associated Press reports China announced earlier this week its exports fell by more than 18 percent last month as compared to the same period of 2013, representing the most recent news about the Asian nation's economic trouble.
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