The Chicago Board of Trade soyabean futures market took a nose dive on Thursday as a change in the weather forecast sparked firms to liquidate long positions, traders said.
"Today's price action is just those two things: The approach of the crop report next week, and the fact that we've got what appears to be some verification of a substantial rain event, at least reducing the area of concern in the eastern Corn Belt," said Rich Fealties, research director for Man Global Research.
Fealties was referring to the government's June 29 acreage report that will list the number of corn and soyabean acres US farmers planted this spring.
July soyabeans closed 20-1/2 cents per bushel lower at $8.18-1/2. The deferred months-ended 16-3/4 to 24-1/2 cents lower. Crops in the eastern Corn Belt were under stress from a lack of rain this season.
But beneficial rains are expected in a lot of the dry areas late this week. Next week it will be hot and dry again, but then another round of showers could move through, a DTN Meteorlogix forecaster said.
"We have a pretty large long spec open interest. Any time there's a little bit of a crack in the facade, you get some people wanting to bail out," said Anne Frisk, oilseed analyst with Prudential Securities. Weekly export sales were mediocre but above trade estimates. The US Agriculture Department said 390,800 tonnes of US soyabeans (359,300 tonnes old crop) were sold for export last week.
Traders expected sales of 100,000 to 300,000 tonnes. The soya products followed soyabeans down, with soyameal under the most pressure amid speculative long liquidation.
There were mixed signals for soyaoil. The weakness in the crude oil market was bearish while a firm close in Malaysian palm oil was supportive, traders said.
CBOT soyameal closed $6.40 to $7.90 per ton lower, with July down $7 at $226.20. July soyaoil ended 0.27 cent per lb. weaker at 35.04 cents, with the back months down 0.20 to 0.30.
Commodity funds sold 6,000 to 7,000 soyabeans contracts, 3,000 to 4,000 soyameal and 3,000 soyaoil, traders said. Weekly export sales data was supportive for soyaoil and a little disappointing for meal.
USDA reported US soyameal export sales from last week at 57,800 tonnes (57,700 tonnes old crop), versus estimates for 50,000 to 125,000 tonnes. Last week's US soyaoil export sales were 20,600 tonnes (all old crop), versus estimates for zero to 10,000 tonnes. Midwest cash basis bids for soyabeans were soft on Thursday amid ample nearby supplies after recent sales and quiet demand, cash dealers said.