Soyabean futures slide

Soyabean futures at the Chicago Board of Trade slid late on Wednesday, with several months falling to contract lows, when technical selling surfaced late in soyabeans and soyameal, traders said.
"We faded into the close. When we broke below the 10- and 20-day average in meal, there was technical selling in beans," one CBOT floor broker said. September soya closed 7-1/4 cents per bushel lower at $5.34, a contract low. New-crop November ended 7-1/2 weaker at $5.46-3/4.
January, March and May soyabeans also made contract lows late. September soyameal closed $1.70 weaker at $158.60 per ton, with the deferreds down $2.20 to $4. October meal ended $2.20 lower at $159.20, after falling below its 10 and 20-day averages near $160.
Unlike soyameal and soyabeans, which were firm most of the session, soyaoil was weak the entire day and settled near the day's lows. September closed 0.26 cent lower at 24.28 cents per lb., with the deferreds down 0.15 to 0.23. Speculative commodity funds were net sellers across the complex.
Funds sold 1,000 to 2,000 soyabean contracts, 1,500 soyameal and 2,000 soyaoil, traders said. The fundamental outlook for soyabeans remains bearish as perfect crop weather in August improved yield potential.
Most analysts expect the US Agriculture Department to raise its forecast of the US soyabean crop in its September 12 crop report. Traders said analytical firm Informal Economics issued its latest crop forecast on Wednesday, pegging the US soya crop at 3.108 billion bushels, reflecting an average yield of 42.0 bushels per acre.
That was bigger than USA's August estimate for 2.928 billion and an average yield of 39.6 bpa. The larger estimate has been factored into the price, traders said.
But there was bear spreading in soyabeans on expectations that the US carryout will be expanding, partially due to a large fall harvest, traders said.
USDA late on Tuesday said 59 percent of the US soya crop was in good to excellent condition, unchanged from a week ago. There was another round of large September deliveries 2,224 underscoring ample supplies and the big discount between cash and futures prices.
Scattered stoppers met the deliveries. Spot basis bids for soyabeans in the Midwest were firm on Wednesday as processors tried to stir fresh sales. With the country price near the loan rate, farmers were not encouraged to sell the remainder of their old-crop supplies, dealers said. CBOT soyaoil remained pressured by weaker energy markets, big US soyaoil stocks and another round of large September deliveries of 616. They were met by scattered stopping. There were no soyameal deliveries on Wednesday. Malaysian palm oil futures closed mixed.