US soybean futures on Chicago Board of Trade fell on Thursday on heavier-than-expected rains for a good portion of the heart of Midwest crop belt, easing concerns about soy yields, traders said. Seventy to 80 percent of the crop region in Iowa and Minnesota saw at least one-half inch of rain over the past day, said a DTN Meteorlogix forecaster.
Midwest top soils have been drying out in recent weeks, threatening soybean yields. August is the key yield determining period for soybeans as they set and fill pods this month. Also bearish were disappointing export sales, especially for soybeans and soyoil. Monthly US Census crush data was mixed. The July soy crush was slightly below trade estimates while meal and oil stocks were smaller than expected.
A turn around in the dollar, strengthening by the midsession, and weaker crude added to the weakness. September soybeans ended 15-1/2 cents a bushel lower at $13.32-1/2, below its 200-day moving average of $13.25. New-crop November soybeans closed down 24 at $13.24.
September soymeal closed 60 cents higher at $368.60 per ton, underpinned by strong cash markets and positioning before first notice day for deliveries on Friday. December meal ended down $6.20 at $358.80. Active September-January and September-October soymeal spreading noted. Fortis spread 1,000 September-January late.
September soyoil ended 0.88 cent per lb lower at 53.34 cents; December closed 0.85 cent down at 54.08. Commodity funds sold 3,000 soybean contracts, 1,000 soymeal and 2,000 soyoil. Traders noted positioning before first notice day for September deliveries on Friday. No soybean or soymeal deliveries were expected given the strong cash markets. Soyoil postings could be hefty at 1,500-2,000 contracts. USDA reported last week's export sales at a net 143,100 tonnes, which included a net reduction of 193,300 tonnes for old-crop sales. China cancelled 240,000 tonnes of 2007/08 sales. Trade estimates were for 150,000 to 250,000 tonnes.
Traders were not surprised by the bean cancellations as it not uncommon for sales to be cancelled as the marketing year for soybeans ends on August 31. USDA said 75,900 tonnes (34,900 tonnes old-crop) of US soymeal sold for export last week, within estimates for 50,000 to 150,000 tonnes.
USDA reported last week's soyoil old-crop export sales at a minus 19,300 tonnes and new-crop at 300 tonnes for a net reduction of 19,000. Traders expected sales of 5,000 to 10,000 tonnes. The reduction reflected a cancellation of 22,300 tonnes of soyoil made by Mexico.
Census Bureau said US processors crushed 139.09 million bushels of soybeans in July, compared to trade estimates for 140.3 million. Census Bureau said July US soymeal stocks 294,505 tons, below average trade estimate for 354,700. Census Bureau said July US soyoil stocks 2.784 billion lbs, below the average trade estimate for 2.832 billion. Malaysian palm oil futures closed mixed.
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