US soyabean futures on the Chicago Board of Trade reached a two-week low on Tuesday as a bounce in the dollar spurred profit-taking, traders said. Dollar rose to two-week highs as investors sought shelter in the currency after US consumer data worsened in October, suggesting an economic recovery could stall.
A firmer dollar makes American exports, such as soya and soya products expensive to overseas buyers and prompts investors to sell commodities as their risk appetite wanes. Updated forecasts calling for an improvement in US harvest weather added to the bearish tone, with prices falling below key support areas. January soyabeans dipped below the 100-day moving average of $9.73-3/4 a bushel. November neared its 100-day MA of $9.69.
Soya held up early but technical selling escalated when soyameal and corn dropped. Nearby soya contracts hit the hardest on liquidation, rolling of November positions before the delivery cycle starts on Friday. November soyabeans fell 13 cents to $9.73-1/2; January closed 12-1/4 lower at $9.76-1/2. Big selling of $10 January call options by MF Global, about 2,000 contracts was bearish.
But late buying of December $9 puts and $10 calls by J.P. Morgan was featured. December soyameal ended $7.20 per ton lower at $287.60; deferreds down $2.40 to $6.10. December soyaoil closed 0.15 cent a lb weaker at 37.48 cents; deferreds down 0.14 to 0.17. Commodity funds sold an estimated 4,000 soyabean contracts, 1,000 soyameal and 1,000 soyaoil-traders.
The exchange will cut margins to trade soyabeans, soyameal and soyaoil starting with Tuesday night trade. Periodic rains this week slowing US harvest but weather to improve next week-DTN Meteorlogix forecaster. US Agriculture Department late Monday said the soyabean harvest was 44 percent complete, compared with the five-year average of 80 percent.
Analysts had expected harvest to be 50 to 55 percent. Soyabean basis bids were mostly firm on thin crushing supplies as harvest slow -dealers. Spot US soyameal basis offers firm as slow harvest pace makes it tough for processors to source nearby beans. Malaysian crude palm oil futures fall to one-week lows on fears of a stock build up.