January 24, 2013
US soyabean futures fell nearly 1 percent early on Wednesday on technical selling and forecasts for welcome moisture in crop areas of Argentina, traders said. The downturn in soyabeans, erasing early gains, dragged down corn and wheat as well. At the Chicago Board of Trade as of 11:57 am CST (1757 GMT), March soyabeans were down 14-1/2 cents at $14.37-1/4 per bushel.
March wheat was down 4-1/2 cents at $7.74-3/4 per bushel, after hitting its lowest price since January 15 at $7.72-3/4 in overnight trade. March corn was down 3-1/4 cents at $7.25-1/4 a bushel. Soyabeans posted the biggest losses, with chart-based selling picking up as the most-active March contract fell below its 200-day moving average near $14.47. Updated weather forecasting models that added beneficial moisture for crop areas of Argentina added pressure.
Trade was choppy. CBOT March wheat’s early slide to a one-week low extended a profit-taking sell-off from Tuesday, when the contract rose to $7.99-3/4 but failed to break psychological resistance at $8. Drought worries underpinned the market, especially at the Kansas City Board of Trade, which trades in hard red winter wheat futures. That class of US wheat is currently facing the biggest threat from persistent drought in the southern US Plains.