REFILE-GRAINS-Nearby soymeal tumbles again, while corn steadies

(Fixes typo in headline)
    * Soymeal extends slide as August options expire
    * Many buyers stay on sidelines after sharp drop in prices
    * China buys U.S. soy, and unknown destinations buy corn

    By Tom Polansek
    CHICAGO, July 26 (Reuters) - U.S. soybean meal futures fell
sharply again on Friday amid waning demand for the livestock
feed, while soybeans touched a one-year low.
    Soymeal tumbled more than $17 per short ton for the session,
after closing down the daily, $20 trading limit for the past two
    End-users are reducing purchases of expensive old-crop
soybeans, which are crushed to make meal, given the prospects for a record-large U.S. harvest and cheaper prices. Technical selling ahead of the expiration of August options contracts on Friday added pressure to prices, traders said. "The relief is that we've got the August meal off of limit down and its trading," said Paul Georgy, president of Allendale. Chicago Board of Trade August soymeal dropped $17.50 to $430.30 per short tonne. The contract has lost nearly 11 percent this week and is down 17 percent from a contract high of $521 that was reached on Monday. August soybeans slipped 5-1/2 cents to $13.49-3/4 a bushel. The contract pared losses after falling in early trading to $13.30-1/2, the lowest for a front-month contract since June 2012. September wheat rose 1 cent to $6.50-1/4 a bushel after matching a contract low of $6.48 in earlier trading. "Much of this is simple short covering ahead of the weekend, especially after the losses we have seen this week," said Karl Setzer, grain solutions team leader for MaxYield Cooperative. September corn closed down 4 cents to $4.92 a bushel after falling to a new contract low of $4.90. New-crop December corn fell 2-3/4 cents to $4.76 and reached its lowest level in more than 2-1/2 years.
The sell-off in corn and soy has pushed some buyers to the sidelines as they are waiting to see whether prices decline more, traders said. China, the world's top soy importer, stepped in to buy 220,000 tonnes of U.S. soybeans, the Agriculture Department said on Friday. Private exporters struck deals to sell 211,328 tonnes of U.S. corn to unknown destinations. The sales were "largely routine and not entirely unexpected" given this week's free fall, said Rich Feltes, vice president of research for R.J. O'Brien. It will be difficult for corn to stage a sharp recovery because favourable weather is fueling forecasts for a record-large U.S. harvest, traders said. Farmers who have old-crop corn left from previous harvests will sell the grain if prices rise, they said. Corn and soy futures have been pressured by declining spot basis bids across the U.S. Midwest this week. Bids continued their setback from historically high levels on Friday due to weakening demand, dealers said. Ethanol plants, corn and soybean processors were said to have bought enough supplies in recent days to meet needs for all or part of August. The level of coverage led the buyers to reduce bids sharply, sparking declines in bids at elevators and terminals along Midwest rivers.
Prices at 4:57 p.m. CDT (2157 GMT) LAST NET PCT YTD CHG CHG CHG CBOT corn 492.00 -4.00 -0.8% -29.5% CBOT soy 1349.75 -5.50 -0.4% -4.9% CBOT meal 430.30 -17.50 -3.9% 2.3% CBOT soyoil 43.58 -0.23 -0.5% -11.4% CBOT wheat 650.25 1.00 0.2% -16.4% CBOT rice 1588.50 14.00 0.9% 6.9% EU wheat 188.00 -0.50 -0.3% -24.9% US crude 104.49 -0.79 -0.8% 13.8% Dow Jones 15,559 3 0.0% 18.7% Gold 1333.29 0.00 0.0% -20.4% Euro/dollar 1.3277 -0.0001 0.0% 0.6% Dollar Index 81.6560 -0.3140 -0.4% 2.4% Baltic Freight 1082 -10 -0.9% 54.8% (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Keiron Henderson, Sofina Mirza-Reid and David Gregorio)

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