The Chicago Board of Trade soyabean market was choppy on Wednesday, caught following the moves in wheat and corn after weeks of volatility, traders said.
Soybeans were firm early on spillover buying from wheat when the 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 by the midsession and corn tumbled, soyabeans weakened. July soyabeans were down 5 cents at $8.02 per bushel by 11:20 am CDT (1620 GMT). The back months were 2-1/2 to 5 cents weaker. Man Financial and Fimat USA were among the sellers of soyabeans, traders said. The drop in soyabeans pressured the products. Additionally, soyaoil was struggling technically.
July soyameal was down $2 per ton at $218.10, with the back months down $1.50 to $2.10. The soyaoil market was 0.05 to 0.27 cent weaker, with July down 0.10 at 34.88. Soyoil 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.
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 US Census Bureau will issue its May crush data on Thursday.
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