Soybean futures on the Chicago Board of Trade (CBOT) continued their downward trajectory Monday, closing 0.6% lower at $10.14 per bushel. The decline reflects deepening market pessimism about demand prospects and mounting global supply-driven by strong harvests across the U.S., EU, and Black Sea regions.

Corn futures dropped 0.8% to $3.96 per bushel, while wheat slid 0.9% to $5.33-1/2, further highlighting the bearish sentiment that has settled over the commodities complex.

"Soybeans continue to be under pressure from the large U.S. and global crops coming our way soon," said Ole Houe of IKON Commodities in Sydney. "It's hard for that market to get any real lift for the next few months."

Contributing to soybeans' woes is weaker-than-expected U.S. export demand, with recent USDA sales reports falling short of market expectations. As harvests progress across key producing regions, storage constraints may soon push more product into global markets, adding to the glut.

For corn, expectations of a robust U.S. harvest-supported by consistent rainfall and mild temperatures in the Midwest crop belt-are putting further downward pressure on prices. Analysts suggest yields could meet or exceed USDA projections if current conditions persist through August.

Meanwhile, wheat faces a double-edged sword: weak demand and expanding supply. A German grain trader noted, "There are hardly any wheat purchase tenders in the market as the week starts," citing slow import activity. Simultaneously, accelerated harvests in the U.S., EU, and Black Sea region are swelling available stocks.

Although Russian farmers have been cautious sellers of their new wheat crop, logistics and storage limitations may soon force more grain into export channels. "They cannot store everything," the German trader added.

Trade Policy BackdropAdding complexity to the price narrative is a new tradework between the U.S. and European Union, announced Sunday. While the deal imposes a 15% tariff on most EU goods, it narrowly avoids a broader trade war. Agricultural products were referenced in tariff eliminations, but lack of detail leaves the market uncertain.

"Tariff elimination of some agricultural products was mentioned in the U.S./EU deal, but the lack of any detail means no judgement can be made on it," the German trader emphasized. Still, market participants are relieved a damaging trade war was averted, given the two economies represent roughly one-third of global trade.

With global harvests accelerating and demand yet to rebound, U.S. farmers and grain marketers face a challenging landscape. The next USDA World Agricultural Supply and Demand Estimates (WASDE) report will be critical in assessing yield expectations and updating export forecasts.