Soyabeans slide

Chicago Board of Trade soyabeans retreated on Wednesday from a six-week high earlier this week, on prospects for an imminent end to the Brazilian truck drivers' strike which had threatened exports just as the country's massive soyabean crop was entering world markets. CBOT wheat also fell as US wheat remains too pricey in world markets and continues to miss out on big tenders. The exception was Egypt buying 290,000 tonnes of US wheat on Tuesday, but the purchase was financed with US credit.
Corn was also weak, with volatile currency markets keeping traders on their toes. The US dollar softened a bit but remained near an 11-year high, making American grain less price-competitive. In Ukraine, a leading grain exporter, the central bank halted commercial currency trading until week's end after its currency collapsed. The Brazilian agriculture minister said after a meeting with truckers on Wednesday afternoon the government was not easing its higher fuel tax - the issue that sparked the week-long strike - but noted truckers showed flexibility and said she was confident a solution would be reached soon.
The government had begun fining protesters and several states allowed the federal police to clear the roads, traders said. "The sell-off was triggered by some lessening concerns about the situation in Brazil," said Anne Frick, a senior oilseeds analyst with Jefferies-Bache. "The idea this issue might be going into the Brazilian courts has people a little more confident that truckers may back off their protests."
US traders also noted the Brazilian soyameal basis weakened on Wednesday, an indication processors were getting enough soyabeans to crush despite the strike. CBOT March soyabeans ended down 8-1/4 cents, 0.8 percent, at $10.07-3/4 a bushel, after soaring to a six-week high of $10.29 on Tuesday.
Chicago March wheat closed 8 cents lower, or down 1.6 percent, at $4.97-3/4 - breaking below $5 for the first time in three weeks. March corn closed down 1-3/4 cents, or 0.5 percent lower, at $3.75-3/4 a bushel. "The wheat market got excited about Egypt's GASC activity this week but the reality is GASC had a coupon," said Joe Lardy, a grains analyst with CHS Hedging. "As we continue to calculate world wheat values - the US is still out of the market."