Soyabean futures fell at the Chicago Board of Trade on Friday amid talk that China may have cancelled some supply purchases it made on the export market, trader said. Wheat futures also fell, pressured by profit-taking following strong gains on Thursday.
Even before soy prices tumbled on Friday, they lagged those of corn - despite a bullish plantings and stocks report released Thursday by the US Department of Agriculture. Explaining the lag, traders voiced concerns about old-crop soybean demand.
CBOT May unofficially ended up 2.72 percent for the week. Drier weather in Argentina is allowing a more active harvest of the soybean crop while an active weather pattern in central and northern Brazil including showers is seen slowing harvest. The Buenos Aires Grains Exchange expects 2010/11 soy production at 48.8 million tonnes, slightly below the Agriculture Ministry's estimate of 50 million tonnes.
Soybean premiums at the US Gulf Coast were flat amid seasonally slow demand, cash traders said. US Gulf soybean prices for nearby shipment were currently at least $20 per tonne FOB higher than Brazilian soybeans at Paranagua port, they added.
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