Soyabean futures at the Chicago Board of Trade were lower early on Wednesday on technical fund selling and on some rainfall in the Midwest crop region, traders said. "There's some rain coming in. Then it's going to get hot for a few days but then there's some more rain coming in," said Vic Lespinasse, floor spokesman for A.G. Edwards and Co.
Dry weather in key growing areas of the Midwest has recently been boosting soyabean futures prices so rainfall now may boost soya production prospects, the traders said.
At 10:14 am CDT (1514 GMT), CBOT soya was down 5 to 12-1/2 cents per bushel. August was down 11 at $6.71-1/2. New-crop November was down 11-1/2 at $6.79-1/2.
Fund selling, tied to long-liquidation and profit-taking, continues to pressure the market, they said. Pit sources also said the market may be getting hit by some forecasts for cooler and wetter weather in the Midwest beginning next week. But most veteran traders said the sharp price decline was technical and spurred by large amounts of fund long-liquidation.
Hotter weather is expected by the weekend in the US Midwest crop region and occasional showers are likely from Wednesday through the end of next week, a private forecaster said on Wednesday.
Meteorlogix's six- to 10-day outlook for the Midwest from Monday through Friday is for normal to above-normal temperatures and normal to below-normal rainfall.
Exports were quiet overnight and cash basis bids for soyabeans in the Midwest late on Tuesday were steady to weak amid a slowdown in farmer selling.
Soyameal futures were $2.60 to $4.80 per ton lower. August was down $2.30 at $211.80 per ton.
Pressure on the soyameal market was stemming from the declines in soyabeans, traders said.
Soyaoil futures were 0.11 to 0.36 cent per lb lower with soyaoil also pressured by the falling soyabeans. August was down 0.24 at 24.22 cents per lb.