US soybean futures on the Chicago Board of Trade fell to a 2-1/2 week low on Wednesday, pressured by the drop in crude oil and the advancing dollar, traders said. September soybeans ended 50-1/2 cents lower at $12.51 a bushel. More heavily traded November closed 47 down at $12.51-1/2, below all key moving averages.
September soymeal closed $11.80 per ton weaker at $353.10; September soyoil settled 1.55 cent per lb down at 50.48 cents. Crude oil closed nearly unchanged after falling more than $2 a barrel early. Commodity funds sold 5,000 soybean contracts, 2,000 soymeal and 3,000 soyoil, traders said.
The surging dollar, reaching its highest point since January, has been a big factor behind the sell-off in commodities, traders said. With it commodity funds have been liquidating long positions, a trend that began as the dollar began climbing last month.
The dry conditions were reflected in the government's weekly crop progress report. USDA said late Tuesday that it cut its rating of the soybean crop by 4 points, putting 57 percent of it good to excellent.
Brokerage firm FC Stone pegged the 2008 US soy crop at 3.003 billion bushels, above USDA's forecast for 2.973 billion. The estimate was bearish as traders expected a smaller number. Firm cash US soybean and soymeal markets, due to tight nearby supplies as rains stalled the southern harvest, offer some underpinning. Limited September deliveries of soybeans and soymeal underscore the firm cash markets. Overnight, there were only three September soybean deliveries and no soymeal. September soyoil deliveries were large - 1,859 lots.
Oil World sees global 2008/09 palm oil output up. Argentine truckers extend their six-day-old strike to the port of Quequen, threatening to disrupt export shipments. Malaysian palm oil futures closed mixed. Dalian soybeans and soymeal were mixed and soyoil closed mostly higher.