November 20, 2013
US soya futures dropped 1.2 percent on Tuesday, pressured by technical selling and expectations that a large crop in South America will bolster the global balance sheet, traders said. Corn was little changed, but the market was trading above overnight lows on bargain buying. Prices hit their lowest since August 2010 during overnight trading. Wheat futures firmed on support from strong overseas demand.
Traders said investors were stepping back from the bullish soyabeans and bearish corn position they have built up during the harvest of a record US corn crop. At 10:50 am CST (1637 GMT), Chicago Board of Trade January soyabean futures were down 18-1/2 cents at $12.69 a bushel. During Tuesday’s session, prices fell below key support at their 200-day moving average for the first time since November 8.
A dry spell in Argentina should allow soya planting to progress rapidly in the next week now that the ground is sufficiently moist, a local meteorologist said. Winter and the first days of spring were dry in Argentina, but abundant rains fell on the main crop areas in October. Soya farmers now need time to work the soil. CBOT corn for December delivery was up 1/4 cent at $4.12-1/4 a bushel. Prices bottomed out at $4.10-3/4 before turning higher.
Corn’s gains were capped by pressure from news that China had cancelled a cargo of US corn because it contained Syngenta AG’s genetically modified Agrisure Viptera corn that has not been approved by Beijing. Most traders said other rejections were unlikely and that the move would not have much long-term impact on flows of grain to China from the United States. CBOT December wheat gained 1-1/4 cent to $6.43-1/2 a bushel.