CBOT soy ends lower on equities decline

CHICAGO: Chicago Board of Trade soybean futures closed lower Tuesday on a drop in equities and crude oil and on a firmer dollar, traders said.

Traders said the soy market was dominated by the outside markets with global stock markets dropping as stagnant growth in Germany led to investor fears the world economy was slowing more than expected.

Crop weather in the US Midwest will remain conducive to plant development over the next week, while hot weather will return to the drought-stricken Plains, an agricultural meteorologist said on Tuesday.

Argentine and Brazilian soybean harvest in early 2012 could face damage from a looming La Nina weather pattern which may reduce rainfall during crop development periods, Hamburg-based oilseeds analysts Oil World said on Tuesday

USDA on Monday said 61 percent of the US soybean crop was in good to excellent condition, unchanged from a week ago and down from 66 percent a year ago.

USDA also said 70 percent of the crop was setting pods, up from 51 percent a week ago and below the 78 percent five-year average.

Malaysian palm oil reversed earlier gains on Tuesday as macro data stoked investor concerns about the health of the global economy.

Copyright Reuters, 2011