Chicago Board of Trade soyabean futures were sharply lower at midday Tuesday after the USDA forecast a surprisingly large 2004 US soyabean crop and only minimally boosted usage estimates, brokers said.
"And historical studies cited today by analysts in their daily commentaries suggest another boost by the USDA in its November crop estimate," he added.
CBOT soyabean futures were last down 20 cents to 27-3/4 cents per bushel, with November down 27 cents at $5.12 after hitting a 17-1/2 month low of $5.06, and January down 28-1/4 cents at $5.19-1/2.
On the demand side, the USDA on Tuesday left unchanged its Chinese 2004/05 soya import estimate at 22.50 million tonnes. China is the top buyer of US soyabeans, and its unprecedented purchases last year helped rally prices to a near 16-year top.
Spot cash soyabean basis bids at US Midwest elevators were mixed on Tuesday, dealers said. US soya export sales were quiet overnight, while weekly US soyabean export inspections totalled 18.079 million bushels, below estimates of 21 to 26 million.
CBOT soyameal futures were last down $5.30 to $9.00 per ton, with October down $9.00 at $151.80 and December down $8.80 at $154.50. Refco Inc and Rand Financial each sold 500 November, brokers said. Cash US soyameal basis offers were steady to weak, dealers said.
Soyaoil futures were last down 0.25 cent to 1.08 cent per lb, with October down 1.08 cent at 19.86 cents and December down 0.93 cent at 20.02 cents.
Rival Malaysian palm oil futures closed mostly firm.
There were 976 deliveries posted against CBOT October soyaoil futures, with scattered stoppers.