US soybean futures on the Chicago Board of Trade dived to a three-month low on Tuesday amid the broad-based sell-off in commodities, traders said. The market rebounded during the session, but that was short-lived and prices fell again late. Improving US crop conditions, a slowdown in Chinese soy demand and weaker Asian markets weighed on soy prices.
August soybeans ended 24-1/2 cents per bushel lower at $12.62-1/2. New-crop November closed 26 down at $12.69. The products followed. August soyoil ended 1.12 cent per lb weaker at 52.98 cents. August soymeal closed $6.50 per ton lower at $347.50. Commodity funds sold 4,500 soybean contracts, 1,000 soymeal and 2,000 soyoil.
Trade limits revert back to normal for Tuesday night since the markets did not see a limit move on the close: soybeans to 70 cents from $1.05, soymeal to $20 from $30, soyoil to 2.5 cents from 3.5 cents. The trend in the soy complex mimicked the Reuters-Jefferies CRB index of 19 commodity futures, slipping to a three-month low on Tuesday led by the big sell-off in crude oil.
Crude oil fell more than $2 a barrel to end near $119. China was an active buyer of soybeans ahead of the Beijing Olympics, which start Friday but demand has since cooled. China Dalian soy complex fell overnight along with Malaysian palm oil futures. USDA said late Monday that 63 percent of the soy crop was good to excellent, up from 62 percent the previous week.
Development is lagging about two weeks, 37 percent was setting pods vs the seasonal average of 58 percent. Consulting firm Informa Economics projected the US soybean crop at 3.054 billion bushels, with an average yield of 42 bushels per acre, traders said.
Brokerage firm FC Stone in its first crop estimate of the year pegged the 2008 US soy crop at 2.993 billion bushels, with an average yield of 41.5 bushels per acre.
The estimates compare to USDA's current outlook for 3-billion-bushel soy crop and an average yield of 41.6 bpa. USDA will issue its next estimate August 12. US corn, soy crops benefit from scattered rains.
Midwest basis bids for soybeans were steady at interior points and firmer at river terminals with farmer sales quiet after the big sell-off in futures this week. Overnight there were only eight August soybean deliveries and no soymeal deliveries. August soyoil deliveries were large, 718 contracts, which were met by scattered stoppers.
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