Soyabean futures at the Chicago Board of Trade fell on Wednesday on a technical setback, following moves in soyabean oil, traders said. Soyabeans have been tracking soyabean oil prices recently, with both markets due for a correction after climbing to multiyear highs during June.
"We had a big reversal in palm oil in Malaysia. Because of that, it took the wind out of the sails on US oil," said Don Rose, an analyst with US Commodities. CBOT soyaoil is hovering at a 23-year high, as global prices for vegetable oil are strong, led by palm, on rising demand for food and fuel needs.
Malaysian palm oils futures fell 3 percent overnight on profit taking. July soyabeans closed 6 cents lower at $8.22-1/4 per bushel after making a contract high of $8.34-1/2 overnight.
The deferred months ended 6 cents down to 1 cent up. July soyaoil settled 0.37 cent per lb. lower at 35.90 cents, with the backs down 0.20 to 0.39. Soyaoil also made contracts highs during the evening session, but slid as profit taking pressured Malaysian palm. The soyameal market ended mixed, down 30 cents to up $1.20 per ton as the oil/meal spread corrected some. July closed 30 cents higher at $223.90 per ton.
Commodity funds sold 4,000 soyabean contracts, 1,000 soyameal and 3,000 soyaoil. Commercial selling also pressured Soyaoil. The CBOT grains were also weak as technical selling pressured Chicago. "Everyone is getting out of long beans/short corn, long oil/short meal, long wheat/short corn," said Charlie Sernatinger, an analyst with Forties Clearing Americas.
Weather remained favourable for crop development, but there were concerns about the dryness in the eastern Midwest. That was seen having more of an impact on corn, which is further along in development than soyabeans, traders said. US cash markets are soft, as farmers have taken advantage of the run-up in prices during June to price some old-crop supplies, cash dealers said.
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