CHICAGO: US soybean futures dropped 1.2 percent to a one-week low on Tuesday as traders locked in profits from last week's rally.
Some concerns about demand following the release of disappointing export data and a bearish monthly crush report on Monday added pressure to the soy complex, traders said. Improving weather in Argentina also contributed to worries that supplies will outstrip world needs as harvest in South America progresses.
"Soybeans are lower, with modest follow-through selling developing on the heels of Monday's bearish reversal from two-week highs," Farm Futures senior analyst Bryce Knorr said in a note to clients. "Sluggish demand news added to weather concerns."
Corn futures, which hit a five-week high on Thursday, also were lower on profit taking. The weakness in corn and soy weighed on wheat, but it eked out a small gain on short covering.
At 9:40 a.m. CDT (1440 GMT), Chicago Board of Trade soybean futures were down 11-1/2 cents at $9.41-3/4 a bushel. The soy market was on track for its biggest daily loss since March 31.
"Yesterday's key soybean demand metrics both came in above their comparable numbers last year, but firmly on the disappointing end of trade estimates," Matt Zeller, director of market information at INTL FCStone, said in a note to clients.
The US National Oilseed Processors Association said on Monday US processors crushed fewer soybeans than expected during March at 153.060 million bushels, down from 156.690 million bushels in March 2016. Analysts had expected a March crush of 156.728 million bushels.
Argentina experienced drier weather over the holiday weekend, and weather forecasters expect that will continue over the next fortnight, said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
"Consequently, it's looking less and less likely that Argentina will see a repeat of last year's widespread flood-related crop losses," Gorey said.
CBOT May wheat was 1/2 cent higher at $4.21-1/2 a bushel. The market had traded in negative territory but held support near the 10-day low hit on Monday.
CBOT May corn was down 3 cents at $3.63-1/2 a bushel.
Traders said a slow start to US planting was keeping corn from falling further.
Some 6 percent of US corn had been planted as of April 16 compared with the five-year average of 9 percent, the USDA said on Monday. Analysts had expected the planting report would show 8 percent of acreage had been seeded.
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