Chicago Board of Trade soyabean futures closed mixed on Tuesday, with front-month soyabean and soymeal lower on an improved outlook for Argentine crops after recent weekend rains, traders said. Soyoil was higher on demand expectations. Traders are closely following Chinese President Hu Jintao's visit to the US this week to see if any deal for soybeans might be announced on his trip.
Gains in wheat and corn underpinned soy prices from the opening, allowing the March soybean contract to hold above support at $14.00, traders noted. US dollar weakness also underpinned prices. March soyabean closed down 9-1/4 cents per bushel at $14.13-1/4. New-crop November was up 2-3/4 cents at $13.26. Funds were net sellers of an estimated 5,000 soyabean futures contracts.
Volume was estimated at about 157,375 contracts, according to data provided by the CME Group. Argentina's drought-hit 2011 soyabean crop could fall to or below 46 million tonnes from 54.5 million tonnes in 2010 unless much more rain falls, Hamburg-based oilseeds analysts Oil World said.
China cancelled two US soy cargoes as government sales hurt margins, buyers shift to Brazilian supplies. China to sell 350,000 tonnes soy, 450,000 tonnes rape oil to crushers. March soymeal closed down $4.70 at $383.40 per ton, following soybeans. Funds sold 2,000 contracts. March soyoil up 0.28 cent at 57.55 cents per lb. Funds bought 2,000 contracts.