Soyabean futures at the Chicago Board of Trade fell about 4 to 5 cents per bushel early Wednesday, pressured by the weakness in soyameal following larger-than-expected meal deliveries posted before the open, traders said.
The market was also setting back from Tuesday's rally and an unexpected improvement in US soya crop ratings.
September soyabeans fell 5-1/4 cents to $5.99-1/2, slipping below $6, while November fell 4-3/4 cents to $6.09-1/2 by 10:17 am CDT (1617 GMT). Weakness in US cash markets contributed to the sell-off along with the weakness in the September/November spread.
Refco, Cargill Investor Services and Man Financial each sold 100-300 November, traders said. September soyameal was down $2.60 per ton at $185.50, with the deferreds $1.90 lower to up 30 cents. Cargill Inc sold 200 December, traders said.
There were 114 deliveries on the September soyameal contract on Wednesday after CBOT registrations jumped by 100 lots to 200 contracts late Tuesday. A Goldenberg Hehmeyer customer stopped them all.
The US Department of Agriculture said late Tuesday that 54 percent of the US soya crop was in good to excellent condition, up from 53 percent the week before.
Maturity of the crop was on par with the five-year average, with 15 percent of US soyabeans dropping leaves. But in Iowa, slated to be the top soya state in 2005, the crop maturity was ahead of the five-year pace - one indication that soyabeans were dying early which could limit yield potential.
Twelve percent of Iowa soyabeans were dropping leaves as of Sunday, compared to 2 percent a year ago and 8 percent for the five-year average.
US Midwest basis bids for soyabeans were weaker again early Wednesday. But deliveries against the September soyabean contract were lightening compared to last week, with 42 lots posted on Wednesday. The Term Commodities house account was a key stopper of 29 lots.
Registrations with the CBOT sagged to 963 lots from the previous 980 late Tuesday.
Overnight export business featured Taiwan buying 58,000 tonnes of US soya. CBOT soyaoil futures followed soyameal and soyabeans lower, with September down 0.02 at 22.83 cents per lb. The back months were 0.01 to 0.09 cent lower. Deliveries on the September soyaoil contract totalled 320 lots and the ADM house account was the key stopper of 239 lots. Registrations with the CBOT were unchanged at 3,828 lots.
Comments
Comments are closed.