US MIDDAY: soya futures drop
November 09, 2012
US soyabean futures dropped in quiet trading on Thursday, pressured by declining export demand ahead of a key US Agriculture Department report, traders said. Wheat futures also fell, their first declines of the week, but losses were limited by concerns about harvest shortfalls tightening the global supply situation. Corn futures weakened in sympathy with wheat and soyabeans.
USDA said early on Thursday that weekly export sales of soyabeans were at their lowest point in 16 months. Net soyabean export sales of 191,900 tonnes were well below forecasts for 600,000 to 800,000 tonnes and included a cancellation of 545,600 tonnes from an unknown country.
“Cancellations in export sales in soyabeans certainly will not go unnoticed,” said Greg Wagner, president of GWX – Ag Advisors. “It begs the questions as to whether or not the market’s poor price performance … might in fact partly reflect a nervousness regarding future cancellations.” At 9:46 am CDT (1546 GMT) Chicago Board of Trade January soyabean futures were 9 cents lower at $14.98 a bushel. CBOT December wheat was down 2-1/2 cents at $8.91-1/2 a bushel and CBOT December corn dropped 1-3/4 cents to $7.42-1/2 a bushel.
Analysts were expecting the government would boost its forecast of US corn and soyabean yields as field reports from harvest indicated that the damage from the worst drought to hit the Midwest in more than 50 years was not as bad as initially feared.