US soybean futures closed lower on Wednesday on a firm dollar and profit-taking after the strong rally on Tuesday. Soybeans technically overbought and due for a correction with the nine-day RSI for January closing Tuesday at 87. CBOT November down 9-3/4 cents at $13.09-1/2 per bushel; January down 9-1/2 at $13.19-1/2. Funds sold an estimated net 3,000 contracts.
Market underpinned by upturn in crude oil and USDA's bullish supply/demand report Tuesday which cut the government estimate of US soy production and ending stocks. USDA confirmed sales of 110,000 tonnes US soybeans to China for 2010/11 delivery. CBOT to raise margins on soybeans after Wednesday's close.
Cash soybean basis mixed in US Midwest interior after light pickup in farmer selling in some areas. CBOT December soymeal down $6.90 at $355.40 a ton. CBOT December soyoil up 0.55 cent at 53.95 cents per lb. Turned higher, supported by an upturn in crude oil and strong global vegoil markets. Exporters sell 30,000 tonnes US soyoil to China for 2010/11 delivery, according to USDA.