The Chicago Board of Trade soyabean futures market gapped lower on Tuesday's open, falling through its 100-day moving average, pressured by outlooks for much-needed rain to move through the US Midwest crop region, traders said.
August soyabeans were 16 cents per bushel lower at $6.44-1/2 by 10:20 am CDT (1520 GMT). New-crop November was 16-1/4 cents weaker at $6.54-1/2 - trading below its 100-day MA of $6.60-1/4.
Funds were big sellers early. Cargill Investor Services, Refco and R.J. O'Brien each sold 1,000 November, traders said.
There was a chance of scattered showers at midweek in the northern portion of the western Midwest, said Meteorlogix weather early Tuesday. It will be mostly dry in the eastern Midwest Tuesday through Thursday, with a chance of showers on Friday and Saturday. But temperatures will be hot, with highs in the upper 80s to mid-90s Fahrenheit.
August is the critical period for the US soyabean crop as it sets and fills pods. Last week's hot, dry spell took its toll on soyabeans, with condition ratings dropping by 3 percentage points.
There were no deliveries on the August soya contract and registrations with the CBOT were at 1,477 lots, down from the previous 1,499 lots.
Midwest cash basis bids for soyabeans were weaker at river terminals due to rising barge freight, while bids at interior locations were steady to firm amid quiet sales.
The soyameal and soyaoil markets were lower following the weakness in soyabeans. August soyameal was $3.70 per ton lower at $208 and August soyaoil was down 0.54 cent at 22.90 cents.
Also pressuring soyameal values were softer US cash markets stemming from weak demand.
There were no deliveries on the August meal contract and no soyameal was registered with the CBOT.
Deliveries on the August soyaoil contract totalled 38 lots with the ADM house account issuing 21 and a Dorman Trading customer posting 17. The key stopper was an LBS customer taking 26 lots.
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