CHICAGO: Chicago Board of Trade soyabean futures fell to a 2-1/2-week low on Wednesday as forecasts for much-needed rains in portions of Brazil's crop area prompted a round of long liquidation and profit-taking, traders said. CBOT January soyabeans settled down 9 cents at $11.53 per bushel, after dipping to $11.42-1/2, the contract's lowest level since November 13.
CBOT January soyameal ended down $4.60 at $385.60 per short ton and January soyaoil fell 0.09 cent to settle at 36.92 cents per pound. Forecasts called for increased rainfall across most of top soya supplier Brazil over the next week, which should begin to reduce stress on the corn and soyabean crops, space technology company Maxar said in a client note.
Rains fell in Argentina on Wednesday but showers should be limited over the next two weeks, the Commodity Weather Group said in a daily note. Commodity funds hold a large net long position in CBOT soyabean futures, leaving the market vulnerable to bouts of long liquidation. So far in 2020, benchmark soyabean futures are up about 21%.
Brisk demand for soyabeans from domestic crushers underpinned the market. The US Department of Agriculture reported late on Tuesday that US processors crushed 196.5 million bushels of soyabeans in October, in line with an average of trade expectations for 196.6 million. Ahead of the USDA's weekly export sales report on Thursday, traders expected the government to report export sales of US soyabeans in the week ended Nov. 26 at 400,000 to 1,150,000 tonnes.
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