US soybean futures on the Chicago Board of Trade sank on Wednesday, hovering near a five-month low, on good crop weather and a firmer dollar, traders said. September soybeans closed 27-1/2 cents lower at $11.81-1/2 a bushel. New-crop November ended 23 down at $11.78.
September soymeal ended $4.40 per ton weaker at $336.80. September soyoil settled 0.49 cent per lb lower at 47.69 cents. Funds sold 3,000 soybean contracts, 2,000 soymeal and 1,000 soyoil. A strong dollar, which makes dollar-denominated commodities more expensive for overseas buyers, has spurred the down trend in commodities.
Dollar rose to one-year peak, shrugging off uncertainty over investment bank Lehman Brothers on the view that problems with the US financial sector would also hurt the global economy. But all markets remain jittery about Lehman as it struggles to revamp it operations after posting a third-quarter loss of $3.93 billion.
Easing concerns that late maturing corn and soybeans in the Midwest could get hurt by an early freeze also played into the bearish sentiment. Odd summer makes it hard to gauge US soy, corn - USDA meteorologist. Some positioning before Friday's USDA September crop report. Analysts mixed in views of whether USDA will raise or lower their US soybean production estimate.
Statistics Canada put July 31 canola stocks at 1.541 million tonnes, down 15 percent from last year but above average trade estimate of 1.2 million. Overnight, there were light September soybean deliveries, 33 contracts and no soymeal - signs of firm cash markets. Soyoil deliveries were heavier at 541 contracts but they were met by strong stoppers. China sees record corn, soy output -CNGOIC think tank.
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