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US soyabean futures closed lower on Tuesday on outlooks for record large US 2010 soya production, spillover from falling wheat futures, lower crude oil and equities markets in addition to weight from seasonal harvest pressure. CBOT September down 7-1/2 cents at $9.99-1/2 per bushel, November down 6-1/2 at $9.99.
Funds sold 3,000 contracts. Long-range forecasts uncertain but it does look wetter for the US Midwest, which would not be good for maturing crops or for early harvesting. Drier weather now through the weekend will favour maturing crops in the US Midwest but also add stress to crops in the east and south. USDA said 64 percent of the US soyabean crop was in good to excellent condition, down from 66 percent a week ago; near trade expectations.
Canadian canola crop outlook improving, according to Oil World. US soya basis steady to firm in US Midwest interior amid quiet country sales; basis weak at river points as barge freight costs rise. CBOT September soyameal down $5.00 at $296.40 per ton. Following soyabeans lower. Funds sold 2,000 contracts. CBOT September soyaoil up 0.23 cent at 39.48 cents per lb. Soyaoil turned up on fund buying. Funds bought 2,000 contracts.

Copyright Reuters, 2010

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