CBOT soy outlook: Prices seen lower on poor export demand

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

U.S. soybean futures are expected to start lower Thursday as lower-than-expected weekly export sales fuel concerns about poor demand for the oilseed.

Traders predict soybeans for November delivery, the most actively traded contract, will open 3 cents to 5 cents a bushel lower at the Chicago Board of Trade. In overnight electronic trading, the contract slipped 2 1/2 cents, or 0.2%, to $13.80 1/4 a bushel.

Weighing on prices will be data from the U.S. Department of Agriculture that shows exporters struck deals to sell just 351,900 tons of soybeans to foreign buyers in the week ended Sept. 8. Traders had been expecting sales of at least 400,000 tons and as much as 600,000 tons.

The lackluster demand increases concerns about waning demand from China, the world's top soybean importer. China has increasingly shifted its business to South America from the U.S.

"Export sales were on the light side," Benson Quinn Commodities told clients in a note.

Traders are keeping a close eye on sales after the USDA on Monday raised its export outlook for the upcoming year in a monthly crop report. Some traders expect demand to increase in the short term as prices have pulled back nearly 6% since the November contract topped a three-year high in late August.

Prices may continue to pull back as the U.S. harvest begins in the Midwest in the next few weeks, attracting more buyers to the market, traders said. Some were encouraged when the USDA said Wednesday private exporters had sold 106,000 tons of soybeans to China.

"The Chinese are notorious for buying on weakness, so maybe we have gotten prices low enough to attract them back to our market," said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.

In other news, there were conflicting opinions about cold weather that threatened to hurt crops in the northern Midwest. AgResource Co., a well-known agricultural consultancy in Chicago, said temperatures were not as cold as initially feared. Freese-Notis Weather said the cold snap met expectations, with lows of 32 degrees or colder "quite common" in northern Iowa, Minnesota, western Wisconsin, and eastern parts of North and South Dakota.


Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Related Articles

No matching related articles at this time.



Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Convyers

Meridian’s conveyors deliver seed with unmatched versatility. Meridian’s transport conveyors are manufactured with heavy-duty, fully enclosed construction. Meridian’s cross cleated ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form