US soybean futures on the Chicago Board of Trade reached a 1-1/2 week low on Wednesday, pressured by outlooks for a record-large 2009 soy harvest, traders said. Good crop conditions coupled with weather forecasts for no crop-killing frost for next two weeks triggered selling.
Soybeans technically weak after a three-day fall, slipping below most key moving averages. Front-month soybean spread stabilised after collapsing Tuesday. September soybeans ended down 4-3/4 cents at $10.09-1/4 a bushel; November closed 4-1/2 lower at $9.51, with support seen at 200-day moving average of $9.40-3/4. US spot cash soybean markets remain strong, quoted $2 a bushel over November as Midwest processors struggle to secure nearby supplies. September soymeal ended down $3.20 at $348.50 a ton; December meal up $3.80 at $292.50.
September soyoil closed 0.41 cent a lb weaker at 34.12 cents per lb. Commodity funds sold, an estimated 3,000 soybean contracts, 1,000 soyoil and bought 1,500 soymeal -traders. Mild weather for US Midwest this week. Brokerage FC Stone raised its estimate of 2009 US soybean production to 3.266 billion bushels, yield of 42.6 bushels per acre.
That is above its August estimate for a 3.247 billion-bushel harvest and USDA's record large production forecast of 3.199 billion bushels, yield of 41.7 bpa. No overnight September soybean or soymeal deliveries, underscoring tight nearby supplies of both.
September soyoil deliveries remain large at 2,925 lots due to ample domestic stocks. China soy importers quiet after large August purchases. China subsidises soy, corn processors. China state soybean sales rise due to concerns about the drought, but China sold only 2 percent of the planned sale of 500,000 tonnes. Argentine farmers to decide on strike extension. Weaker soyoil drags palm oil to new five-week low.