The Chicago Board of Trade soyabean market dived early on Tuesday as massive technical selling surfaced, with prices blowing through key support levels, traders said. New-crop November soyabeans fell nearly the 50-cent trading limit for the second straight day, down 47-3/4 cents.
The two-day sell-off was fuelled by easing US crop weather concerns as cooler temperatures and some rains were forecast to move through the parched US Midwest.
Sell-stops were triggered all the way down, with commission houses liquidating long positions, traders said.
Traders caught with long positions were forced to liquidate as the soyabean market declined by nearly $1 in the past two days.
August is the yield-determining month for soyabeans. That is when the crop sets and fills pods. In contrast, July is the key yield-determining month for corn as it pollinates.
Old-crop July was 33-1/2 cents per bushel lower at $6.61 by 11:40 am (1640 GMT) and new-crop November was 34-3/4 cents weaker at $6.81.
Cooler temperatures were expected to move into the US Midwest later this week but conditions should remain sizzling through Wednesday, continuing to stress corn and soyabeans, Joel Burgio, Meteorlogix forecaster, said on Tuesday.
Rains will also move through the Corn Belt, but the amounts in the parched eastern Midwest will remain light.
The soya product markets were also lower amid fund long liquidation, following the weakness in soyabeans.
July soyameal was down $8.90 per ton at $206.50, with the deferreds $7 to $10.10 lower. US cash soyameal markets were also soft as customers were sidelined, waiting for prices to keep falling.
July soyaoil was down 0.59 cent at 23.93 cents per lb, with the deferreds 0.56 to 0.78 cent lower.
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