Chicago | Reuters — Chicago Board of Trade soybean futures weakened on Monday, dipping below the US$10-per-bushel threshold the market hit for the first time in 2-1/2 months last week.
“Soybeans are lower, giving back some of last week’s gains on profit taking,” Farm Futures analyst Bryce Knorr said in a note to clients.
Soybean futures had risen 2.9 per cent last week, supported by the U.S. Agriculture Department’s surprise cut to its harvest yield forecast.
Corn futures also fell on Monday, pressured by forecasts for warm, dry weather in the Midwest crop belt, which should allow farmers to pick up the pace of harvesting following a slow start. Weaker-than-expected weekly export data added to the weight hanging over the corn market.
Wheat futures dropped on technical selling after hitting a one-week high early in the trading session.
CBOT November soybean futures settled down 9-1/4 cents at $9.91 a bushel (all figures US$).
“The U.S. market has been a key driver of soybean prices as the USDA reduced its yield forecast,” said Phin Ziebell, agribusiness economist at National Australia Bank. “But it has not changed the fundamental picture significantly.”
A weaker-than-expected report on the pace of crushing at U.S. soy processors added to the bearish tone. The National Oilseed Processors Association said the September soybean crush totalled 136.419 million bushels. Analysts had been expecting 138.071 million bushels.
Declines were kept in check by strong demand. USDA said weekly export inspections of soybeans totalled 1.770 million tonnes, topping forecasts that ranged from 1.1 million to 1.4 million.
USDA said corn export inspections were 322,672 tonnes and wheat export inspections were 322,860 tonnes for the week ended Thursday. Both came in below the low end of market expectations.
CBOT December corn futures were 2-1/4 cents lower at $3.50-1/2 a bushel and CBOT December soft red winter wheat was down three cents at $4.36-1/2 a bushel.
Investors were awaiting an update on soybean and corn harvesting in USDA’s weekly crop progress report due on Monday afternoon.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago; additional reporting by Naveen Thukral in Singapore and Gus Trompiz in Paris.