Soyabean futures on the Chicago Board of Trade closed down sharply, erasing Monday's gains amid fund selling and position squaring ahead of Wednesday's US Agriculture Department crop report, traders said. Funds sellers of an estimated 7,000 soyabean futures contracts, floor sources said, as well as 3,000 each soymeal and soyoil contracts. Late selling was tied to index-fund re-balancing.
Traders said Argentine weather also was a factor in the sell-off, with some analysts expecting soybeans will be better able to withstand hot and dry weather than corn. Options trades also were a factor in the price decline. At the close, pit traders estimated the implied volatility rate for at-the-money February soybean options eased to 33 percent and was 31.25 percent for the March. Exporters sell 116,000 tonnes US soybeans to China for 2010/11 delivery, according to USDA.
January soyabeans ended down 22-3/4 cents at $13.50-1/2 per bushel; most-active March was down 1.7 percent, or 23-1/2 at $13.57, new-crop November down 14-3/4 cents at $12.73. March soymeal down $7.70 at $362.90 per ton. Cash market bids were mostly unchanged at US Midwest processors, elevators, ethanol plants and river terminals. Deliveries on January total 21 contracts; the Tenco house account stopped all of the soymeal. March soyoil down 0.52 cent at 56.61 cents per lb. following soyabeans. Palm oil eases ahead of key USDA report.
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