US soyabean futures fell 1.4 percent on Wednesday, setting back from a three-week high notched Tuesday amid a broad-based technical rally in commodities spurred by a weaker dollar, traders said. Outlooks for the driest areas of Brazil's crop region to get rain this week and the falling crude oil market also weighed on soya prices.
"Today, cooler heads prevailed and we're seeing a correction; the move in beans was especially overdone," said Joe Lardy, a grains analyst with CHS Inc, the largest US farm co-op. "There wasn't a good fundamental reason behind Tuesday's rally." US corn was also lower while wheat was mixed after both jumped 4 percent on Tuesday.
Saudi Arabia, Egypt, Iraq, Jordan, Bangladesh and South Korea have all purchased or tendered for wheat this week. Statistics Canada also released its December 31 stocks data on Wednesday, which landed within traders' expectations. Stats Canada said all-wheat stocks were 24.8 million tonnes, the second-largest in 18 years. Canola supplies totalled 11.1 million tonnes, the second-highest ever, and soyabean stocks jumped 29.4 percent to a record 3.5 million tonnes.
By the midsession, Chicago Board of Trade March soyabeans were down 12-1/2 cents, or 1.3 percent, at $9.74-1/2 a bushel. Chicago wheat was at $5.15, up 1-1/4 cents or 0.2 percent, while March corn was at $3.83-3/4, down 2 cents or 0.5 percent. EIA showed a weekly drop in corn ethanol production of 30,000 barrels per day to 948,000 bpd, the lowest production since the first week of November 2014.
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