Soyabeans lower as wheat and corn fade

The Chicago Board of Trade soyabean market ended lower on Wednesday, caught following the moves in wheat and corn after weeks of volatility, traders said. Soyabeans were firm on slipover buying from wheat when that market hit an 11-year high amid global stocks and US hard red winter wheat harvest worries.
It boils down to a tug for acres with soyabeans tracking the moves in wheat to prevent further acreage losses, traders said. As wheat turned south and corn tumbled, soyabeans weakened.
July soyabeans closed 3-1/2 cents lower at $8.03-1/2 per bushel. The back months ended 1-3/4 to 4-3/4 weaker. The drop in soyabeans pressured the products. Additionally, soyaoil was struggling technically. July soyameal settled $2.20 per ton lowers at $217.90, with the back months mostly lower down $1.90 to up 50 cents.
The soyaoil market closed mixed 0.12 cent per lb. lower to 0.12 cent higher, with July down 0.02 at 34.96 cents. Soyaoil has been trapped in recent ranges, showing signs of technical weakness after hitting a 23-year top in mid-June.
Late last week July dipped below is 50-day moving average then bounced. Volume was large across the complex. In soyabeans, an estimated 142,474 futures and 27,785 options traded.
Soyameal volume was pegged at 49,913 futures and 3,351 options. Estimated soyaoil volume was 73,060 futures and 10,040 options. Commodity funds sold 4,000 soyabean contracts, 3,000 soyameal and 1,000 soyaoil, traders said.
Traders were awaiting the release of the government's acreage report on Friday and first-day deliveries for July contracts. Generally, traders and analysts are looking for USDA to bump up its US soyabean acreage figure slightly.
Additionally, the weather looks less threatening for next week, as an expected high-pressure ridge moving into the Midwest will fade as the week progresses, a forecaster said.
The milder forecast was the spark that initiated selling in corn, traders said. The US Census Bureau will issue its May crush data on Thursday. Analyst crush estimates ranged from 150.0 million to 151.0 million bushels, with the average at 150.4 million.
That compared to 146.2 million bushels crushed in May of 2006. Spot basis bids for soyabeans in the Midwest held weak amid limited demand and country movement was slow, cash dealers said.