US MIDDAY: Soyabeans retreat

CHICAGO: US soyabean futures fell on Tuesday, retreating from two-year highs above $10 a bushel as traders booked profits and forecasts called for favorable weather for the start of the Midwest harvest, analysts said. Corn futures backed down from six-month highs set a day earlier, and wheat followed the weak trend.

As of 12:48 p.m. CDT (1748 GMT), Chicago Board of Trade November soyabeans were down 6-3/4 cents at $9.92-3/4 per bushel, a day after reaching $10.08-3/4, the highest for a most-active contract since June 2018. Technical selling accelerated as the November contract fell below Monday's low of $9.96.

CBOT December corn was down 3-1/2 cents at $3.66 a bushel and December wheat was down 8-1/4 cents at $5.37-1/2 a bushel. Industry data showing a smaller-than-expected US soyabean crushing pace added to bearish sentiment. The National Oilseed Processors Association (NOPA) said its members, which handle about 95 percent of all soyabeans crushed in the United States, processed 165.055 million bushels of soyabeans in August, a nine-month low that fell below the average trade estimate of 169.5 million.

Meanwhile, dry weather expected in Midwest should help jump-start the harvest of large US corn and soyabean crops. "The negative sentiment was already in the market prior to the NOPA crush report," said Terry Reilly, senior analyst with Futures International in Chicago. "Overall, US weather looks fantastic, with the exception of the far lower Delta region (and) southeast, where un-harvested soyabeans and corn might see localized flooding," Reilly said.

Export demand helped underpin futures. The US Department of Agriculture on Tuesday confirmed sales of 132,000 tonnes of US soyabeans to China, along with sales of soyabeans and corn to unknown destinations. Soyabean futures in particular appeared due for a pullback after the CBOT November contract rose in 14 of the last 15 trading sessions.

Traders shrugged off declines in US corn and soya condition ratings as crops approach maturity. The USDA late Monday rated 60% of US corn in good-to-excellent condition, down from 61% last week, and 63% of US soyabeans as good-to-excellent, down from 65% previously. Analysts on average had expected no change.