US soyabean futures fell 1.2 percent on Wednesday on a technical setback following two days of modest gains, traders said. Corn and wheat futures also weakened as a bleak fundamental picture, highlighted by plentiful global stocks, cast a bearish tone across the agriculture sector.
Signs that export demand for US supplies was drying up added further pressure to soyabeans after the market firmed during the overnight session. US exporters have reported just one sale of soyabeans to the government this week and only two last week.
"After another day of not seeing a private export sale, that got the trade on the defensive," said Brian Hoops, president of Midwest Market Solutions, a brokerage and commodity marketing advisory service. "That is what is weighing on the market." At 10:43 am CST (1643 GMT), Chicago Board of Trade soyabeans for January delivery were down 10-1/4 cents at $8.53-3/4 a bushel.
Prices hit resistance after a firm open pushed the market near levels not reached since before the US Agriculture Department forecast record US production in its monthly supply and demand report on November 10. CBOT December wheat was down 4 cents at $4.83-1/2 a bushel. The front-month wheat contract hit its lowest since September 21. CBOT December corn shed 2 cents to $3.60 a bushel. Analysts said forecasts for rain that will boost production in key wheat-growing areas were weighing on prices. "Global supply prospects have improved in recent days and with continued soft demand for US supplies, there hasn't been much to support prices," said one Sydney-based grains trader, who declined to be named as he is not authorised to talk to the media.
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