US soyabean futures on the Chicago Board of Trade turned lower on Tuesday, following the sell-off in wheat, traders said. Also weighing on the soya market was call option selling. "We followed wheat up and now we're following it back down.
As far as fundamental inputs, there's not much new to go on," one CBOT trader said. March soyabeans were down 10-1/2 cents at $13.15-1/2 per bushel by 12:20 pm CST (1820 GMT). The deferreds were 19-1/2 cents weaker to 2 cents up. Traders noted that MF Global sold 1,500 July soyabean $16 calls.
Chicago wheat markets dived as the combination of expanded trading limits and higher futures margins broke the deadlock in the limit-up moves that occurred last week and caused markets to lock, preventing trading to take place. CBOT soyameal was lower, losing ground to soyaoil, under a little more pressure from the weakness in the feedgrains.
March meal was down $5.50 per ton at $350 per ton; back months were down $4.60 to $8. Soyaoil 0.03 to 0.22 cent per lb lower, with March down at 0.30 at 55.27 cents. "There was nothing too earth shaking in the budget numbers," said the trader who was eyeing USDA's acreage forecasts used to compile the government's 2008 budget.
USDA projected US soyabean plantings at 71 million acres, up from the 63.6 million seeded last spring and corn plantings at 88 million acres, compared to 93.6 million seeded in 2007. Underpinning the market were worries about rains in northern Brazil delaying harvest. That could keep importers interested in buying US soyabeans for an extended period if the rains stall the South American harvest and prevent Brazilian beans from moving into marketing channels, traders said.
Mato Grosso received up to an inch or more of rain in some areas in the past day, with more expected on Tuesday, according to DTN Meteorlogix. Also supportive was the ongoing battle for US soyabean acres. The red-hot Minneapolis spring wheat market could entice northern farmers to increase spring wheat plantings, reducing the chances for northern acres being planted to soyabeans. Midwest basis bids for soyabeans were steady to firm on Tuesday after the downturn in futures on Monday, cash dealers said. Farmer sales were quiet.