CBOT Soybeans Tumble Due to Favorable US Weather and Trade Uncertainty

CBOT soybeans finished lower due to beneficial US weather and trade jitters. Bunge Global SA, a global agribusiness and food company, operates through four segments: Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. Its Agribusiness segment is involved in purchasing, storing, transporting, processing, and selling agricultural commodities and commodity products worldwide.

Bunge Global SA (BG) has completed its merger with Viterra Limited, forming a global agribusiness powerhouse. This strategic combination, announced in June 2023, was unanimously approved by the boards of both companies and finalized in October 2023 after overcoming regulatory challenges and competition concerns [1].

The merged entity, Bunge-Viterra, will leverage an enhanced global network and diversified agriculture network covering all major crops. This combination will connect the world's largest production regions to areas of the fastest-growing demand, improving the geographical balance and adaptability of global value chains. The deal is expected to generate $250 million in annual gross pre-tax operational synergies in the first three years, with the transaction anticipated to be accretive to Bunge's adjusted earnings per share in the first full year post-closing [1].

Bunge's Agribusiness segment, which purchases, stores, transports, processes, and sells agricultural commodities and commodity products worldwide, will benefit from increased operational efficiency and innovation. The combination aims to address pressing needs such as food security, efficiency for end-customers, market access for farmers, and sustainable food, feed, and renewable fuel production [1].

Despite the merger, Bunge's stock performance has been mixed. Over the past year, Bunge shares have lost 23.1% compared to the industry's decline of 9.6%. The company currently carries a Zacks Rank #3 (Hold), with some better-ranked stocks in the basic materials space being Carpenter Technology Corporation (CRS), SSR Mining Inc. (SSRM), and ATI Inc. (ATI) [1].

In parallel, the soybean market is experiencing significant shifts. After months of stagnation and bearish pressure, the market is at a crossroads. Key factors include China's strategic purchases, supply bottlenecks in South America, and peak demand for soybeans in China's animal feed industry. Technical indicators, such as the MACD and RSI, suggest a turnaround in momentum [2].

CBOT soybeans finished lower on July 2, 2025, due to beneficial U.S. weather and trade jitters. Analysts predict that the November soybean contract (SX25) may test support at $10.28 per bushel, with a potential drop to $10.20-3/4 if support is breached [3].

References:
[1] https://www.nasdaq.com/articles/bunge-viterra-close-merger-form-global-agribusiness-powerhouse
[2] https://www.ainvest.com/news/cbot-soybeans-technical-rebound-strategic-buying-opportunity-2507/
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3T402K:0-cbot-soybeans-may-test-support-at-10-28/