US MIDDAY: CBOT soy slides on spot July contract

14 Jul, 2004

Soybean futures at the Chicago Board of Trade fell on Tuesday, led lower by the spot July contract after a key merchant delivered more than 1 million bushels against the July contract, traders said.
These were the first deliveries made on the July contract, with the contract's expiration just one day away. The July contract will expire at 12:01 pm CDT (1801 GMT) on Wednesday.
Term Commodities, a unit of trader Louis Dreyfus, put out 220 lots of soy, and an R.J. O'Brien customer stopped 103. Registrations with the CBOT late Monday also jumped to 223 lots from the previous three.
CBOT soy futures were 4 to 24 cents per bushel lower by 9:55 am CDT, with old-crop July down 23 at $9.14. New-crop November fell 3 at $6.38 per bushel, under pressure from prospects of a record-large US crop amid perfect Midwest growing weather.
UBS Warburg sold 1,000 November in the first 30 minutes of the session, traders said.
USDA rated 68 percent of US soy in good to excellent condition as of Sunday, up from 67 a week ago.
The Midwest cash basis bids for soy were mixed, with some processors dropping bids 5-10 cents while others bumped them up a nickel. CIF soybeans at the Gulf were mostly steady, dealers said.
Soymeal futures were mostly lower following the trend in soybeans, down $10 to up $1.30, led by the old-crop months. July dropped $10 per ton to $303.00 per ton.
There were no deliveries Tuesday against the July contract. Registrations were unchanged at 146 lots.
Soyoil futures were also weaker on spillover pressure from soybean futures and a lower close in Malaysian palm oil futures overnight.
The soyoil market was down 0.05 to 0.37 cent per lb, with July down 0.30 at 26.70 cents.
Deliveries on the July contract were at 77 lots with an Iowa Grain customer posting 69 lots. A Tenco customer was the key stopper of 42 lots. Registrations declined to 4,460 lots from the previous 4,560.

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