Soyabean futures on the Chicago Board of Trade tumbled early on Wednesday on technical selling and a disappointing open in wheat futures, traders said.
As of 9:50 am CDT (1450 GMT), the benchmark November soyabean contract was down 12-1/2 cents at $8.53-1/2 per bushel, a one-week low, dropping below support at its 20-day moving average of $8.60. Also, USDA said exporters reported the sale of 120,000 tonnes of soybeans to China for 2007/08 delivery. Strength in wheat was likely to lend support. But overall benign US crop weather should limit rallies.
The overnight e-cbot trend for soyabeans was up 1/2 to 5 cents per bushel, with bellwether November up 1/2 cent at $8.66-1/2.
A tropical depression in the Gulf of Mexico will likely strengthen into a tropical storm before hitting the south Texas coast on Thursday, but forecaster DTN Meteorlogix said the storm was unlikely to generate much rain for parched crop regions of the Mississippi River Delta region. Traders were also eyeing Tropical Storm Dean, which is moving toward the Caribbean islands.
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