US MIDDAY: soyabeans slide

September 13, 2013

US Midwest soya
US Midwest soya

US soyabeans futures sagged on Thursday as traders took profits and liquidated long positions before the government updates its harvest outlook in a highly anticipated crop report. Corn and wheat also edged lower, giving up some gains from recent sessions, in the run-up to the release of US Department of Agriculture crop data at 11 am CDT (1600 GMT).

Traders are eager to see USDA’s outlook for the autumn soyabean harvest after a stretch of stressful weather in August, the critical growth period for soya crops in the United States, the world’s top producer and exporter of the oilseed. Private forecasters in recent weeks reduced their harvest estimates because of hot, dry weather and traders have factored in cuts of varying degrees. “There is little doubt that we will see soyabean production cut; the question is how much,” said Sterling Smith, futures specialist for Citi. Chicago Board of Trade November soyabeans were down 11 cents at $13.47-1/4 a bushel by 9:40 am CDT (1440 GMT).

The USDA is expected to trim its soyabean yield estimate to 41.2 bushels per acre from 42.6 bushels in August, according to a Reuters poll. Traders are less anxious about USDA’s corn numbers given that the corn crop was more mature and thought to have suffered less damage than soyabeans from the August heat. December corn slipped 2-1/2 cents to $4.70, while December wheat eased 2-3/4 cents to $6.45-1/4. Courtesy Reuters

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