Chicago Close: Soybeans Buckle to Profit Taking

Soybean futures suffered a rare down day on Tuesday, buckling under to profit taking.

Trading near two-year highs around $10/bu after closing higher in 14 of the previous 15 sessions, soybeans relaxed as traders took some money off the table. Further pressure came as NOPA crushers reported processing 165.06 million bu of beans in August. That was down 2% year-over-year and below the trade average guess of 169.47 million bu. Expected good weather in the Midwest for the start of harvest further undermined the market. On the other hand, the USDA announced two soybean export sales this morning; 132,000 tonnes to China, and another 132,000 tonnes to unknown destinations. November beans dropped 8 cents to $9.91 ½ and January lost 7 ½ cents to $9.95 ¾.

Corn was also lower, pressured by the favourable harvest forecasts. Monday’s USDA crop progress report had the American corn harvest at 5% complete as of Sunday, on par with the five-year average. December corn fell 3 ½ cents to $3.66 and March lost 3 ¼ cents to $3.75 ¾.

The losses in corn and soybeans dragged wheat lower as well. An estimated 92% of the US spring wheat crop was in the bin as of Sunday, on par with the average, while the planting of the 2021 winter wheat crop was 10% complete, 2 points ahead of average. December Chicago wheat was down 7 ½ cents at $5.38 ¼, December Kansas City dropped 5 ½ cents to $4.68 and December Minneapolis lost 6 ¼ cents to $5.24 ¼.

Live cattle futures were mostly higher today, while lean hogs were mostly lower.

Source: DePutter Publishing Ltd.

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