Chicago Board of Trade (CBOT) soyabean futures fell to a near one-month low on Wednesday, as funds sought to grab profits and favorable growing weather in South America boosts predictions of bountiful harvests, traders said. CBOT January soyabeans ended down 14 cents at $8.70 per bushel. The front-month contract hit its lowest since November 27. The March contract also fell 14 cents, to settle at $8.83 a bushel on Wednesday.
CBOT January soyameal fell $4.10 to $303.40 per short ton and January soyaoil fell 0.38 cent to 27.36 cents per pound. Brazil and Argentina recently received rains in dry areas that should help with crop development, according to meteorologists and traders. Rains are expected to fall in the center and northern crop areas in the coming days in Brazil, while Argentine crop areas could see a chance of rains later this week or this weekend.
Traders also were disappointed that there were no signs of additional sales of US soyabeans to China, the world's top importer of the oilseed, or of deals for corn. Daily export sales reporting by the US Department of Agriculture has halted during the partial shut down of the federal government. "Traders are trading blind here, because of the government shut down," said Mark Gold, founder of Top Third Ag Marketing. "With the big carryouts, there's a move to the path of least resistance - and there is nothing showing that there are big export numbers happening in soyabeans, which is what the market really needs to see." The United States inspected 651,181 tonnes of US soyabeans for export last week, the US Department of Agriculture said on Wednesday. That was below analysts' expectations for 800,000 to 1.2 million tonnes.