Soyabeans drop

US soyabean futures fell to a six-week low on Monday as funds liquidated some of their record-large long positions as worries about Europe's shaky economy sparked a broad selloff of riskier assets. Chicago corn and wheat rose slightly after two weeks of losses despite pressure from the stronger US dollar and favourable US crop weather, bucking the risk-off trend that sank crude oil and other commodities along with the euro and equities.
Commodity funds sold an estimated net 9,000 soyabean futures contracts in Chicago, trade sources said. Soyabeans were vulnerable after large speculators boosted their net long position in the oilseed to a record high in early May. Market watchers said some investors may have had to sell soyabeans to cover losses in other assets such as financial stocks or European debt. "A lot of these longs in soyabeans are being held by the same traders who had money in Greece and the European Union, J.P. Morgan - there are two black eyes right there," said Karl Setzer, a market analyst for Iowa-based MaxYield Co-operative,
"These guys are in panic mode right now," Setzer said. "They might have to take some profits out of commodities to cover losses on the financials." Chicago Board Of Trade July soyabean futures fell 19 cents, or 1.4 percent, at $13.87 per bushel, paring earlier losses that sent prices to their weakest levels since March 30.
The new-crop November soyabean contract fell below $13 per bushel for the first in six weeks, pressured by optimism about US planting progress and expectations that US farmers will plant more soyabeans than the USDA forecast on March 30. After markets closed, the USDA said US corn planting was 87 percent complete as of Sunday, with soyabean planting 46 percent done, slightly further ahead than traders had expected.
CBOT July corn, which slipped to a 14-month low last week, gained 2 cents to $5.83 a bushel, while July wheat gained 1-1/4 cents to $5.98-1/4. Soyabeans gained some support after the US Department of Agriculture reported greater soyabean export inspections than expected, and domestic soyabean crushing data was also stronger than thought, said Anne Frick, an analyst at Jefferies Bache. "Have we seen our lows? Probably not, but today we're bouncing a bit," she said.