Chicago Board of Trade soybean futures fell 2.6 percent on Tuesday after China's devaluation of the yuan sparked a rally in the dollar that made US commodities more expensive for the world's top buyer of soybeans. The drop in soybeans, which erased much of a 33-cent gain on Monday, was part of a broad sell-off in commodities stemming from China's move.
Weak cash markets added further pressure to soy futures. Traders also said a US Agriculture Department report on Monday afternoon that showed good-to-excellent ratings for soybeans stabilised at 63 percent contributed to the futures drop. Analysts had been expecting a 1 percentage point decline. Soymeal and soyoil futures also posted sharp declines, caught up in the overall bearish tone hanging over commodity markets.
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