CHICAGO: US soybeans reversed from earlier gains to fall more than 2 percent on Thursday, pressured by weakening soymeal futures and smaller-than-expected private crushing data.
Wheat futures extended their worst downturn in six months on lackluster export demand for US supplies while corn was little-changed after declining to a five-week low in the previous session. The National Oilseed Processors Association in a monthly report released at midday said soy crushers in the United States processed 165.383 million bushels of soybeans in December.
The figure was just below the record-large crush from the same month in 2013 but came in near the low end of analyst expectations.
Coupled with a 2 percent drop in Chicago Board of Trade soymeal futures amid demand worries, the NOPA data was a sell signal in the soybean pit.
"I view (NOPA) as neutral but the trade thinks differently," said Terry Reilly, analyst at Futures International in Chicago. The soyoil yield was below expectations, the NOPA data showed, supporting futures for the vegetable oil. "The selling of the meal and buying of the oil is a solid play today," Reilly added.
Soybeans for March delivery fell 21 cents to $9.88-1/4 per bushel as of 11:39 a.m. CST (1739 GMT), the lowest level since Oct. 27.
Bearish outside markets continued to weigh on agriculture commodities, with crude oil sharply lower and the dollar at nearly a decade-high against a basket of other currencies - reducing the competitiveness of grain exports priced in the greenback.
Egypt's main buying agency earlier announced a purchase of 240,000 tonnes of wheat from France. No US wheat was offered in the tender, with supplies uncompetitive in the top global wheat market.
CBOT wheat for March delivery was about 1 percent, or 6-1/4 cents lower, at $5.31-1/4 per bushel, on pace of its seven consecutive down day. CBOT March corn was down 3/4 cent at $3.81-1/4 per bushel, stabilizing after its largest two-day skid since June.
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