US MIDDAY: soya retreats

12 May, 2016

US soyabean and corn futures declined on Wednesday in a light profit-taking setback, one day after bullish soya stocks data in a monthly US government report sent soyabeans soaring to the highest levels since 2014. Wheat also sagged, pressured by plentiful global supplies and the approach of the US harvest.
At the Chicago Board of Trade as of 12:08 p.m. CDT (1708 GMT), July soyabeans were down 7-1/2 cents at $10.76-1/2 per bushel. July corn fell 5 cents to $3.76 a bushel and July wheat slipped 3 cents to $4.58-1/4 a bushel. Soyabeans retreated after follow-through buying from Tuesday's surge lifted the lightly-traded May contract, which is in delivery, to $10.82-1/4, the highest spot price since November 2014.
Most-active July soyabeans turned lower after failing to match a 21-month high set Tuesday at $10.91-1/2. CBOT soyameal futures turned down after setting contract highs. Soyabean futures exploded higher on Tuesday, with some contracts briefly rising the 65-cent daily limit, after the US Department of Agriculture's May supply/demand report projected lower-than-expected US soya ending stocks for the 2015-16 and 2016-17 marketing years.
The CBOT expanded the daily trading limits for soya products for Wednesday's session, but trade was far more subdued. Like soyabeans, corn and wheat sagged on Wednesday, retreating from early advances. The USDA on Tuesday projected that US inventories of both corn and wheat would rise by the end of the 2016-17 marketing year to levels not seen since the 1980s. The government also on Tuesday estimated the US winter wheat production at 1.427 billion bushels, above an average of trade estimates.

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