US soyabean futures fell on Wednesday as traders turned their attention to rising inventories from a record-large harvest and mostly favourable crop weather in South America, analysts said. Corn futures drifted lower in lacklustre trade while wheat was choppy, with this week's surge in the dollar adding pressure. A firmer dollar tends to make US goods less competitive on the world market.
As of 12:35 pm CST (1835 GMT), Chicago Board of Trade January soyabeans were down 5-1/2 cents at $9.84 per bushel. December corn was down 1-1/2 cents at $3.40 per bushel and December wheat was down 1/2 cent at $3.98-1/2. Soyabeans were higher in early moves, supported in part by follow-through buying a day after the National Oilseed Processors Association said its members in October recorded their third-largest soya crush in history.
But the market was unable to maintain those advances, and the benchmark January contract dropped back below its 200-day moving average. The market flagged despite the US Department of Agriculture confirming fresh export sales of US soyabeans for the third day in a row.
US soya sales are expected to stall early in 2017 as the South American harvest becomes available, Scoville said. Corn futures appeared to face chart resistance. The December contract was unable to push above its 50- and 100-day moving averages, which have converged near $3.43 per bushel. Both corn and soyabeans had underlying support from a slowdown in farmer selling as the US harvest wound down. The USDA reported corn harvest progress at 93 percent and soyabean progress at 97 percent as of Sunday. Wheat futures were steady to lower despite news of a large purchase by Algeria. The North African country's state grains agency, OAIC, bought 580,000 tonnes of optional-origin milling wheat, European traders said.
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