Soyabean futures at the Chicago Board of Trade closed lower on Tuesday on a profit-taking setback after the rally that began on Friday in response to USA's bullish acreage figure, traders said. The soyabean market was due for an adjustment after climbing about 60 cents since last on Thursday.
Reacting to the government's US soya acreage estimate of 64.1 million acres far below trade expectations and the lowest seedlings since 1995. Weather outlooks for generally mild crop growing conditions in July also weighed on prices.
"There's rain forecast for next week for the Corn Belt and one big private analyst forecast no heat for the summer," said Charlie Sernatinger, analyst with Forties Clearing Americas. He was referring to an extended weather forecast put out by Drew Learner, agricultural meteorologist and president of World Weather Inc in Kansas City.
Heavy rains in the southern Plains, little change in sea surface temperatures in the north Pacific Ocean and a weakening of the weather anomaly La Nina pointed toward milder-than-expected crop growing conditions during July, Learner said. July soyabeans closed 14-1/2 cents lower at $8.50-1/2 per bushel and November ended 15-1/2 down at $8.82-1/4. The other months settled 12 to 15-1/2 lower.
The products were pressured by the weakness in soyabeans. July soyameal closed $3.20 per ton lower at $232.60, with the back months down 50 cents to $4.60. Soyaoil settled 0.34 to 0.47 cent per lb. weaker, with July down 0.37 cent at 36.36 cents. Commodity funds sold 5,000 soyabean futures, 2,000 soyameal and 2,000 soyaoil, traders said.
CBOT markets will be closed for the Independence Day holiday until the electronic session on Wednesday night. The weekly crop progress report issued on Monday reflected that growing conditions were improving. USDA said 68 percent of US soyabeans were in good to excellent conditioning a 2-point improvement from the previous week. Cash soyabean markets remain weak, pressured by ample nearby supplies and quiet export trade, cash dealers said. Spot basis levels were steady on Tuesday with sales quiet as farmers expected soyabean prices to rise. The weakness in cash markets was reflected in heavy futures deliveries.
There were 2,532 July soyabean deliveries overnight, met by scattered stoppers. July soyameal deliveries of 11 contracts were light and met by commercial stopping with a J.P. Morgan customer taking all 11. Soyaoil July deliveries were heavy at 1,049 contracts and were met by scattered stoppers.