US soyabean futures on the Chicago Board of Trade slid early Wednesday on follow-through pressure from recession fears amid sinking financial markets, traders said. The Dow Jones industrial average was down about 170 points and crude oil prices slid, putting pressure on the market.
Even without the recession jitters, the CBOT grain and oilseed markets were poised for a technical setback after rising to record highs since the first of year. Commodities were attractive to Wall Street speculators as an inflation hedge amid outlooks for strong demand for grains and soyabeans, traders said. March soyabeans were down 10-1/2 cents at $12.29 a bushel by 10:35 am CST (1535 GMT).
The deferred months were down 9-3/4 to 21 cents, with old-crop contracts gaining on the new crop due to stronger cash basis levels since the CBOT sell-off. There was talk among Chicago floor traders that the drop in futures sparked fresh soyabean sales to China - four cargoes of US soyabeans and five cargoes out of Brazil.
Also supportive was a drier outlook this week for Argentina, the No 3 soyabean producer. CBOT soyameal was mostly lower - down $9.10 to up $9.10, with March down $3.80 at $333.10 per ton. Soyaoil was 0.43 cent to 0.65 cent per lb lower, with March down 0.50 cent at 51.18 cents.