Chicago Board of Trade soyabean futures remained under pressure on Monday, closing sharply down as funds scrambled to shed their long positions amid trade uncertainty and a strong start to the US growing season. The CBOT July soyabeans settled down 15-1/2 cents to $9.53-3/4 a bushel, after earlier touching $9.53-1/4, the contract's lowest point since August 16.
Mostly warm and wet weather in the Midwest acted as a negative press on July soyabean futures even as meteorological forecasts called for more rains across the western Plains and northwest portions of the Midwest next week. Weather also pressured the CBOT November soyabeans contract, as traders began adjusting their positions for what some believe will be a strong new crop currently growing in the US
November soyabeans closed down 16 cents, to $9.73-3/4, a nearly five-month low. But while the warmer temperatures had boosted crop development, some grain analysts warned that soil moisture reserves in parts of the Midwest are drawing down - meaning that timely rainfall during the growing season is going to be an important factor to watch in the coming weeks and months.
Elevated trade tensions between the United States and major trading partners like China, Mexico and Canada also weighed down grain prices amid concerns about slower export demand. "There is not a single bullish indicator for soyabeans right now," said one trader.
The US Department of Agriculture is expected to rate 75 percent of the US soyabean crop as good to excellent, analysts predicted, unchanged from a week earlier, following a week of mostly favourable weather in the Midwest crop belt. The government is scheduled to release its report at 3 p.m. CDT (2000 GMT) on Monday.
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