Improved crop weather in the heart of US soy country drove Chicago Board of Trade soybean futures lower on Friday and to a fresh one-month low, traders said. "It's all weather right now; there were some rains around and it's not as hot," a trader said.
The US soy crop is entering its key pod-setting stage of development and cooler, damper weather now will boost production prospects, they said. CBOT soy closed 4 to 8 cents per bushel lower, with August down 7-1/4 at $5.77 per bushel. New-crop November was down 7 at $5.98-1/2.
Volume was estimated by the exchange at 77,078 futures, up from 69,174 on Thursday, and 21,033 options. Cooler temperatures and some showers will help diminish stress on the Midwest corn and soybean crops during their reproductive stages, a private forecaster said.
"The cooler temperatures for the next few days will reduce stress, but some areas in the western Corn Belt remain very dry so there's still some stress there due to a lack of moisture," said Meteorlogix forecaster Joel Burgio.
Exports were quiet overnight and cash basis bids for soybeans in the Midwest were steady to firm as dealers tried to spark some interest among farmers reluctant to sell at current cash prices.
Chart-based traders were eyeing the August contract, which remains below all key moving averages. Trade sources said technical support in the August at $5.80 per bushel was broken, driving the contract to a session low of $5.75-1/2 per bushel. Resistance was at $5.86. The August options contract expired quietly at midday on Friday.
Soymeal was unchanged to $1.20 per ton lower, with August down $1.20 at $166.50 per ton. Soymeal followed soybeans lower in a volatile US Midwest weather market.
Soyoil also was pressured by the decline in soy and on a setback after the strong fund-related gains on Thursday. Soyoil was down 0.12 to 0.25 cent per lb lower, with August down 0.24 at 26.17 cents per lb.