Soybeans futures dive

US soybean futures on the Chicago Board of Trade dived on Tuesday amid spillover selling from the plunge in crude oil and prospects for more US soy acres given the slow planting pace for corn, traders said. The cool, wet spring put corn planting far enough behind that farmers were beginning to consider switching intended-corn acres to soybeans, traders said.
July soybeans ended down 20-1/4 cents at $13.47-3/4 per bushel, falling below its 100-day moving average of $13.48. July soyoil closed 1.36 cent per lb lower at 62.20 cents and July soymeal ended $1.60 down per ton $335. New York July crude oil settled $3.34 per barrel weaker at $128.85, pressed by a stronger dollar and the prospect of lower demand as some Asian government moved to reduce fuel subsidies to consumers.
The July/November soybean spread widened, correcting some from last week's moves when July gained on November amid the Argentine farm labour strife. November soybeans ended 12-1/4 cents lower at $13.41-1/4.
Volume was moderate in soybeans and moderate to light in the products. Estimated soybean trade was 99,066 futures and 26,483 options. Soymeal volume was pegged at 31,072 futures and 805 options. Soyoil trade was seen at 43,576 futures and 857 options. Commodity funds sold roughly 2,000 soybean contracts, 1,000 soymeal and 2,500 soyoil, traders said.
USDA confirmed sales of 165,000 tonnes of US soybeans to unknown for 2008/09 delivery. USDA said Tuesday that 12.703 million bushels of US soy inspected for export last week, above estimates for 7 million to 11 million. US Midwest spot basis bids for soybeans were steady to firm, underpinned by quiet farmer sales, dealers said. Mexico will open a tariff-free import quota for 100,000 tonnes of beans to ease tight food supply and rising prices, Economy Minister Eduardo Sojo said Monday.
Trade data from the Commodity Futures Trading Commission issued late Friday showed that large speculators expanded their net long position in soybeans by 4,200 contracts to 86,936 as of the week ended May 20. In the products, large specs cut their net long positions. Funds trimmed their net longs in CBOT soyoil by 4,400 lots to 16,000 contracts. In soymeal futures/options, large speculators were net long 32,600 contracts, down 2,400. Malaysian palm oil futures rose 1.6 percent on a mix of weather concerns and strong crude oil prices.