Chicago Board of Trade (CBOT) soyabean futures fell over one percent on Wednesday on long-liquidation in anticipation of heavy movement soon of soyabean supplies from South America’s bumper harvest. Slow sales of soya from Brazil and Argentina have been helping lift soyabean futures but traders said they expected movement to increase soon.
Spot May which has recently been boosted by tight domestic soya stocks, slow farmer selling and soaring cash markets fell the most in 1-1/2 weeks and new-crop November fell for the fourth consecutive trading session, the longest losing streak in 2-1/2 months.
“Seasonal declines should be expected in soyabeans and this despite the red hot domestic cash market. I think there was liquidation ahead of expected exports soon from South America as they get their logistics worked out,” said Don Roose, president of US Commodities, Des Moines, Iowa.
Soyabean spot cash basis bids soared as much as 27 cents per bushel around the US Midwest on Wednesday, with bids rising to the highest levels ever for this time of year at most processors and elevators round the region, dealers said. Wheat fell despite likely additional freeze damage on Wednesday to portions of the US Plains hard red winter wheat crop. Some pressure on wheat stemmed from a Statistics Canada report on Wednesday forecasting Canadian wheat plantings at 26.618 million acres, the most in 12 years.
“Absolutely the number (Canadian plantings) is a big new input today and a bearish market factor. The plantings estimate was 2.4 million above most estimates so it’s a big deal,” said Terry Linn, analyst for Chicago trade house The Linn Group. Corn staged a cautious rebound in a technical bounce from its slide to a two-week low the previous session and on hesitant sales of corn by farmers, traders said. CBOT corn for May delivery was up 1 cent per bushel at $6.39-1/2, May soyabeans were down 15-3/4 cents at $14.04, and wheat for May delivery was down 5-3/4 at $6.91-3/4. Kansas City Board of Trade (KCBT) hard red winter wheat futures were flat to firm and gained relative to CBOT wheat due to the hesitant sales of KCBT contracts after the freeze. Also CBOT May wheat declined, KCBT May rose 1-3/4 cents.
