US soyabeans fell more than 1 percent on Wednesday, reversing a one-month high in a profit-taking sell-off following a US Department of Agriculture report that showed smaller-than-expected ending stocks of beans. Corn and wheat futures also eased at the Chicago Board of Trade, with corn hitting session lows in the minutes after the monthly supply and demand report was released at midday.
USDA pegged both soyabean and corn ending stocks below analyst expectations amid strong soya export demand and increased domestic corn demand for sweeteners. The agency boosted world and domestic wheat stocks. "I think it's a 'buy the rumour, sell the fact day,' now that we got USDA acknowledging US (soyabean) exports are higher," said Terry Reilly, analyst at Futures International. CBOT January soyabeans in an "outside day" on the charts shed 17-1/4 cents to $10.32 per bushel for their first decline in six sessions.
CBOT March corn was down 1-1/2 cents at $3.93-3/4 per bushel and CBOT March wheat was off 4 cents at $5.81-3/4, with each trimming losses late in the session. Investment funds sold 9,000 soyabean contracts, 4,000 wheat contracts and bought and sold equal amounts of corn, trade sources said.
Brazil's government crop supply agency Conab also hiked its soya production estimate to a record 95.8 million tonnes, further pressuring futures. "Between these (USDA) numbers and the (Conab) Brazilian numbers - which were huge, and might get bigger - the market is saying that we've got it covered," Price Futures Group analyst Jack Scoville said of the soyabean market.
Wheat was down for a second straight session, touching a 1-1/2-week low on waning concerns that Russia will restrict exports. "Wheat is falling today because of relief that Russia does not seem to be intending to introduce wheat export restrictions," said Frank Rijkers, agrifood economist at ABN Amro Bank.
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