By Michael Hirtzer
CHICAGO, Jan 15 (Reuters) – U.S. soybeans reversed from
earlier gains to fall more than 2 percent on Thursday, pressured
by weakening soymeal futures and smaller-than-expected private
crushing data.
Wheat futures extended their worst downturn in six months on
lackluster export demand for U.S. supplies while corn was
little-changed after declining to a five-week low in the
previous session.
The National Oilseed Processors Association in a monthly
report released at midday said soy crushers in the United States
processed 165.383 million bushels of soybeans in December. The
figure was just below the record-large crush from the same month
in 2013 but came in near the low end of analyst expectations.
Coupled with a 2 percent drop in Chicago Board of Trade
soymeal futures amid demand worries, the NOPA data was a
sell signal in the soybean pit.
“I view (NOPA) as neutral but the trade thinks differently,”
said Terry Reilly, analyst at Futures International in Chicago.
The soyoil yield was below expectations, the NOPA data
showed, supporting futures for the vegetable oil. “The
selling of the meal and buying of the oil is a solid play
today,” Reilly added.
Soybeans for March delivery fell 21 cents to $9.88-1/4
per bushel as of 11:39 a.m. CST (1739 GMT), the lowest level
since Oct. 27.
Bearish outside markets continued to weigh on agriculture
commodities, with crude oil sharply lower and the dollar
at nearly a decade-high against a basket of other
currencies – reducing the competitiveness of grain exports
priced in the greenback.
Egypt’s main buying agency earlier announced a purchase of
240,000 tonnes of wheat from France. No U.S. wheat was offered
in the tender, with supplies uncompetitive in the top global
wheat market.
CBOT wheat for March delivery was about 1 percent, or
6-1/4 cents lower, at $5.31-1/4 per bushel, on pace of its seven
consecutive down day.
CBOT March corn was down 3/4 cent at $3.81-1/4 per bushel,
stabilizing after its largest two-day skid since June.
(Additional reporting by Nigel Hunt in London and Naveen
Thukral in Singapore; Editing by Michael Urquhart and Tom Brown)