US soyabean futures dropped for a second straight day on Thursday on technical selling and profit taking following government data showing lower-than-anticipated US export sales last week. Forecasts for rain and cooler temperatures in Argentina by mid-February and an accelerating soya harvest in Brazil further weighed on prices.
Corn and wheat followed soyabeans lower in a profit-taking and technical slide, although declines in corn were partly offset by stronger-than-expected export sales in the weekly US Department of Agriculture report. US soyabean export sales are lagging the pace needed to reach the USDA's forecast as the traditional US export season, which runs from the autumn harvest until Brazil's harvest ramps up in February, winds down.
Net US soyabean export sales last week totalled just 409,700 tonnes, well below trade expectations and the lowest in eight months, according to USDA data. Meanwhile, broker and consultancy INTL FCStone on Thursday raised its Brazilian soyabean harvest forecast to 111.08 million tonnes, up about 1 million from its January outlook and above the USDA's latest estimate of 110 million tonnes.
The USDA will update its supply and demand estimates in a monthly report next week. Chicago Board of Trade March soyabeans were down 9-1/2 cents at $9.86-1/4 a bushel by 12:21 p.m. CST (1821 GMT). The contract earlier touched a near-two-week low, with selling accelerating as it breached its 50-, 100- and 200-day moving averages.
CBOT March corn was a penny lower at $3.60-1/2 a bushel as strong export sales data largely offset spillover pressure from soyabeans. Net corn export sales of nearly 1.9 million tonnes last week topped trade expectations. CBOT March soft red winter wheat was 2-1/4 cents lower at $4.49-1/2 a bushel.
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