Chicago Board of Trade soybean futures closed lower on Friday as holders of long positions, nervous about the political crisis in Egypt and what it might mean for exports, exited ahead of the weekend, traders said. Crude oil and gold prices surged on the Egyptian news, while the US stock market fell sharply, reinforcing jitters in the grain markets.
Funds had been buyers in the day, tripping buy-stops in the March contracts on the way up around $14.14, but near-term chart resistance held at $14.26 and funds were sellers on the way down, the sources said. By the close, funds were said to have been net sellers of bought an estimated 4,000 soybean futures contracts.
March closed down 1-1/2 cents per bushel at $13.98. New-crop November was down 2-1/2 cents at $13.23. Daily volume was estimated at 252,300 contracts, according to data provided by the CME Group. A pay strike at Argentine grains ports has stopped 20 ships from loading, threatening exports from one of the world's biggest food suppliers, the port authority said.
Argentina's soy crop, stressed by dry weather, should benefit from rainfall by the weekend. Overall satisfactory crop weather continues in Brazil. Exporters sell 110,000 tonnes US soybeans to China for 2011/12 delivery - USDA. Midwest soybean basis bids mostly steady to lower; slow movement March soymeal closed down $0.40 at $377.00 per ton. Following soybeans. Funds sold an estimated 1,000 contracts. March soyoil down 0.14 cents at 57.27 cents per lb. Following soybeans. Funds sold some 2,000 contracts.
Comments
Comments are closed for this article.