Chicago Board of Trade soybean futures slid on Thursday on follow-through selling from Wednesday, pressured by burdensome supplies and easing concerns about hot Midwest weather for soy, traders said.
Even though temperatures could reach 100 degrees Fahrenheit in western Iowa and eastern Nebraska this weekend, traders were less worried about the heat for soybeans as August is the crop's key yield determining period. However, July is key for corn as it is pollinates. Late in the session there were updated weather forecasts for rain in the parched western Midwest that added pressure to corn which spilled over to soybeans.
"We got some pressure from the threat of thunderstorms for Nebraska, Iowa and the Dakotas, the driest part of the belt," said one CBOT floor trader. July soy closed 5-1/2 cents down at $5.97-1/2 per bushel. New-crop November was 7-1/2 lower at $6.22. USDA export sales data released early Thursday was considered neutral for soybeans, coming in close to expectations.
The government reported that US soybean export sales last week, were 349,600 tonnes, compared to estimates for 200,000 to 350,000 tonnes. There were 950 July soybean deliveries Thursday as the delivery equivalents encourage deliveries. They were met by scattered stopping. There were 3,714 CBOT registrations, down from the previous 3,774.
Midwest spot basis bids were mixed early Thursday after scattered farmer sales this week, dealers said. CBOT soymeal was lower, setting back from its firm close on Wednesday linked to meal/oil spreading when the spread corrected slightly. Soyoil continues to gain on meal amid strong technical buying in oil. Record high oil prices amid uncertainty in the Middle East underpinned soyoil, a key ingredient in biodiesel.
July soymeal closed $2.50 per ton lower at $171, with deferreds 50 cents to $3.50 weaker. July soyoil ended 0.07 cent higher at 27.12 cents per lb, with deferreds mostly higher - up 0.17 to down 0.04 cent. The nearbys in soyoil were up on a rebound from Wednesday's weakness. Speculative money continues to flow in soyoil amid strong technical buy signals, driving open interest for a second straight day to a record 279,930 contracts on Wednesday.
Export data for both products were neutral to bearish, coming in at the low end of trade expectations. USDA reported US soymeal export sales last week at 57,700 tonnes, compared with estimates for 50,000 to 120,000 tonnes. US soyoil export sales last week were 300 tonnes amid estimates for nil to 6,000 tonnes.
The National Oilseed Processors Association will release its June crush data on Friday. Traders expect a crush of 126-131 million bushels, down from 138.6 million in May.
In the delivery market, there were 80 July soymeal deliveries which were met by commercial stopping. The ADM house account took all the meal. CBOT soymeal registrations were unchanged at 736 lots.
In soyoil there were only 11 July deliveries and an R.J. O'Brien customer stopped all of the soyoil. Soyoil registrations with the CBOT were unchanged at 6,878 lots.