CBOT soy outlook: Seen lower on rain, slowing 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 start lower Thursday, pressured by Midwest rains and slowing demand.

CBOT soybeans are called to open down 2 cents to 3 cents lower.

In overnight trading, Chicago Board of Trade August soybeans were up 1/4 cent at $13.76 a bushel, and new crop November futures were down 3 1/4 cents at $13.77 1/4.

Rains moving across the northern Midwest are expected to weigh on prices, as the moisture is seen alleviating stress from above normal heat in the central U.S. crop belt. Slower domestic and export demand are seen adding to the negative tone.

However, soy futures are expected to remain within recent trading ranges, with apprehension about yield potential, as the southern Midwest continue to miss out on rain amid persistent heat, analysts said.

Grain traders are keeping a close eye on the weather and condition ratings because farmers need to harvest a large crop to replenish low inventories. The trade is concerned about conditions, as soybeans head into to their yield development stage of pod filling in August.

Lagging demand will apply pressure, as historically high price levels are showing signs of rationing buyer interest.

"Soybeans export sales slowed once again, as the market traded near $14 a bushel," said Doug Bergman, broker with brokerage MF Global in Chicago in a market note.

U.S. soybean sales totaled 372,700 metric tons in the week ended July 21, the U.S. Department of Agriculture reported in its weekly sales report. Sales of 362,200 tons were for delivery in the next marketing year, which begins Sept. 1. Sales increases were noted to unknown destinations of 110,000 tons and China 224,000 tons. Sales for the current marketing year resulted in net sales of 10,500 tons.

The Census Bureau reported soybeans crushed in June totaled 124.3 million bushels, below the average of trade estimates at 125.1 million and below May's crush rate of 128 million. Soymeal inventories or stocks dropped to 289,326 short tons from 374,957 in May. Soyoil stocks slipped to 3.115 billion pounds from 3.178 billion in May.

Traders are also focused on U.S. debt and its impact on the economy, with outside financial markets poised to offer price weakness. A firmer U.S. dollar encourages traders to reduce some risk exposure as they await a decision on the U.S. debt ceiling.


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


Grain Storage Systems

Behlen Grain Storage Systems offers large capacity bins with diameters from 16’ to 157’ and capacities exceeding 1,500,000 bushels. All ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form