Chicago Close: Soys Drop for Third Straight Day

Soybean futures closed weaker for the third straight day on Wednesday as harvest pressure more than offset continued Chinese export demand.

The USDA this morning announced 132,000 tonnes of beans sold to China, the 13th consecutive business day of sales to the world’s No. 1 soy buyer. A further 126,000 tonnes was announced for unknown destinations. Chinese import commitments from the US now total more than 700 million bu. But while Chinese demand played a central role in pushing soybean futures to new two-year highs, seasonal harvest pressure is now coming to fore. Weather forecasts calling for mostly dry, warm Midwest weather for the next couple of weeks which suggests the harvest pace will accelerate. November beans fell 5 ¼ cents to $10.14 ½ and January lost 5 ¾ cents to $10.18 ¾.

Corn also ended lower for the third straight day, with harvest pressure the main undermining factor. US ethanol production is also declining, with the average daily output for the week ending Sept. 18 at 906,000 barrels, down 20,000 barrels from a week earlier and a 13-week low. December lost ¾ of a cent to $3.68 ½ and March fell 1 ¼ cents to $3.77 ½.

Wheat felt pressure from a higher US dollar which is limiting international export demand for American supplies. December Chicago wheat lost 9 cents to $5.49, December Kansas City fell 7 ½ cents to $4.84 ¼ and December Minneapolis ended 6 ¾ cents lower at $5.33.

Live cattle futures were higher today. Lean hogs ended mixed.

Source: DePutter Publishing Ltd.

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