Soyabean futures fell for the fourth straight session at the Chicago Board of Trade, touching their lowest level in more than five weeks on pressure from a firm dollar and expectations of a large crop coming out of South America in 2010, traders said.
Strong export demand has underpinned US prices during the past few months but overseas buyers have turned their attention to countries such as Brazil and Argentina for next year's purchases amid good weather for soyabean development. Argentina's soya harvest will hit a record 50.8 million tonnes in 2009/10, the Rosario grain exchange said on Tuesday.
"China has really relied on US supplies after a fairly disappointing South American crop last season," said Toby Hassall, research analyst at CWA Global markets. "Now the trade is focused on South American production prospects for 2010, which look favourable at this point."
At 11:36 am CST (1736 GMT), Chicago Board of Trade January soyabean futures were down 10-1/2 cents, or 1 percent, at $9.90-1/2 a bushel. Prices had fallen to $9.84-1/2 earlier in the session, the lowest level since the market hit $9.80-1/2 on November 13. Easy availability of soyabeans in the United States and a tight spread between the January and March soyabean futures contracts were providing little incentives for farmers or commercial operators to hold on to their supplies.
"You are talking about the largest record crop ever of soyabeans," said Joe Victor, grains analyst at Allendale Inc in McHenry, Illinois. "There is still not adequate carry. We are suggesting to sell beans off the combine." The firm dollar, which was trading at a two-month high against the yen, was weighing on soyabeans as well as corn. A rising dollar makes US commodities relatively more expensive on the world market.
Falling crude oil and gold prices also sparked some selling in soyabean and corn. CBOT March corn was down 3 cents at $3.97 a bushel. The market will look at a crop progress report later on Tuesday to see how much of this year's US corn crop is still in the fields after a weather-delayed harvest.
Analysts were expecting the US Agriculture Department to show that corn harvest was about 95 percent complete. A larger-than-normal portion of the US corn crop will likely be left standing in fields this winter. Wheat futures rose but the rally showed little conviction ahead of the Christmas holiday. "End of season, light volume, thin trade," Allendale's Victor said. "It really does not take much to move this market." CBOT March soft red winter wheat was up 3-1/4 cents at $5.22-3/4 a bushel.
Comments
Comments are closed.