US MIDDAY: soyabean weaker on follow-through selling

14 Sep, 2005

Soyabean futures at the Chicago Board of Trade were expected to open 1 to 3 cents per bushel lower on Tuesday on follow-through selling from USDA's larger-than-expected US soy crop estimate issued on Monday, traders said.
The market fell to a near seven-month low on Monday, reacting to USDA raising its 2005 US soy production forecast by 65 million bushels, or 2 percent, to 2.856 billion bushels.
The increase came following beneficial Midwest rains in early August. Also bearish was a step up in harvest movement as farmers were combining early harvested soybeans. Soybean yields in central Indiana were running about 40 bushels per acre, cash dealers said on Tuesday. Harvest pressure also weighed on basis levels.
The US Department of Agriculture said late Monday it left its US crop ratings the same as a week ago, with 54 percent of the crop making the good to excellent rating. The crop was maturing quicker than normal as 37 percent of the soybeans were dropping leaves, compared to 31 percent for the five-year pace.
For the first time since the start of the September delivery period there were no soybean, soymeal or soyoil deliveries posted. Soybean registrations with the CBOT were unchanged at 1,020 lots late Monday. Soymeal registrations with the CBOT were unchanged at 200 lots. In soyoil, CBOT registrations were unchanged at 3,828 lots.

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