Soyabean futures at the Chicago Board of Trade closed lower on Wednesday amid fund selling and reports from a crop tour in the Midwest of solid soya yield prospects this year, traders said. Soya fell to the days lows near the close and new-crop November ended below key support at its 200-day moving average of $6.17-1/4. Pit sources said FIMAT Futures and Rand Financial were the noted sellers on the close.
CBOT soya closed 2 to 8-1/4 cents per bushel lower. September was down 8-1/4 at $6.02-1/2 per bushel. New-crop November was down 7-3/4 at $6.12-3/4.
Traders continued to monitor soya yield reports from this year's annual crop tour of the Midwest. "Everything I've seen from the tour doesn't look that bad," a trader said.
"Of course it's not as good as last year, but we weren't expecting it to be." Crop scouts on the John Deere Pro Farmer tour of the Midwest said on Wednesday that soyabean fields in northern Illinois had benefited from August rains.
Yield potential in west central Iowa was below the Pro Farmer three-year average, the crop scouts said. In south-west Iowa, the crop scouts reported soya pod counts above the tour's year-ago averages.
"From what I've seen so far from them in South Dakota, Nebraska, Ohio and Indiana there have been no surprises and I don't think there was anything that we weren't expecting from Illinois or Iowa today," said Dale Gustafson, analyst for Citicorp.
Drought this year in top producer Illinois had boosted soya futures while generally satisfactory weather in other states, including the other top producer, Iowa continued to counter the bullish impact of the harsh conditions in the east.
Cooler and wetter weather in August has revived soya production prospects and current weather patterns in the Midwest were viewed as generally benign to bearish for the soya futures market.
Meteorlogix weather on Wednesday said there was a chance of showers in the western Midwest later this week and mostly dry weather was expected over the weekend.
A few showers may surface in the south-west portion of the eastern Midwest on Thursday through on Saturday and it should be dry on Sunday.
There were no indications of extreme crop-damaging temperatures. Exports were quiet overnight and cash basis bids for soya in the Midwest late on Tuesday were steady to firm.
Farmer selling remained quiet ahead of the approaching harvest. Traders said talk remains that China may have bought US soya, but nothing was confirmed as of late on Wednesday.
Technical support in the new-crop November contract at $6.18-1/4 per bushel was broken, driving the contract to a session low of $6.11-1/2. Resistance was at $6.24.
The nine-day relative strength index for November closed on Wednesday at 29, just below the benchmark 30 level that technical traders consider an oversold mark.
Soyameal closed 50 cents to $2.60 per ton lower amid slipover pressure from tumbling soya. Tenneco Inc sold 300 December near the close. September was down $1.70 at $188.30 per ton.
Soyaoil was unchanged to 0.10 cent per lb. lower, pressured by a sag in soya. September was down 0.06 at 22.50 cents per lb. Malaysian palm oil futures closed weak overnight.
Traders in Kuala Lumpur said palm fell almost 1 percent amid long liquidation.
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