US soybean futures on the Chicago Board of Trade ended lower on Wednesday after a topsy-turvy session, pressured by prospects for a record large American harvest, traders said. Waning worries about a crop-killing frost before October 1 weighed on prices. The midday run of US weather forecasting models indicated a possible frost in the Upper Midwest October 2-4.
That would be the normal first frost date for the area, with more corn acres vulnerable to cool temperatures than soybeans. Soybeans lost ground to corn as spreads continued to adjust after months of soy gaining on corn. Large speculators hold a net long soybean position and are short corn, which tends to trigger corn/soy spreading. China on holiday keeping export demand quiet this week.
Sliding crude oil, down nearly $3/barrel led to spillover selling in soybean oil and soybeans. November soybeans ended down 1-1/2 cents at $9.20-1/2 a bushel. Earlier November soy rallied to $9.26 after buy-stops were hit at $9.22. For comparison, December corn ended 4-1/2 cents up at $3.30-1/4. October soymeal closed up $2.40 at $284.50 a ton; December up $1.80 a ton at $280.50.
October soyoil ended down 0.35 cent at 34.16 cents per lb; December down 0.36 cents at 34.56. Meal/oil spread adjusted after several days of soyoil gaining on meal. Weakness in crude oil weighed on soyoil. Volume moderate. Estimated soybean trade was 96,417 futures, 46,011 options. Soymeal volume pegged at 41,689 futures and 3,707 options. Soyoil volume estimated at 49,247 futures and 2,247 options.
Commodity funds sold 2,000 soybean contracts, 1,000 soyoil and bought about 500 soymeal contracts-traders said. Federal Reserve met and kept interest rates unchanged, as expected, but also said it would slow purchases of mortgage debt - a step toward a measured withdrawal its extraordinary support for the economy. USDA confirmed the sale of 116,000 tonnes of US soy to unknown destinations for 2009/10 delivery.
USDA also confirmed sale of 55,000 tonnes of soybean oil to unknown destinations for 2009/10 delivery. China sold 14,800 tonnes of soybeans during its weekly stockpile auction, just 2.9 percent of the 500,000 tonnes offered, with prices still unattractive. US Midwest spot soy basis bids steady late Wednesday, with farmer sales quiet as rains slow harvest-dealers.
US Census Bureau to issue monthly crush data on Thursday. Traders expecting soybean crushings in a range of 118 million to 119.1 million bushels. Malaysia's September 1-20 palm oil exports up 2.9 percent to 837,656 tonnes, said cargo surveyor Societe Generale de Surveillance. Malaysian palm oil fell 2 pct as traders took profits after cargo surveyor reported improved exports.