Soybean futures slip as US harvest advances and funds cut positions

what happened

According to Reuters, CBOT soybean futures extended their decline on Tuesday, although prices held within a narrow range. American farmers rushed to bring in their crops, while speculative funds were closing long positions. Market participants are concerned that a stronger dollar could hold back US exports.

The dollar firmed against the euro, yen and pound on Tuesday, as traders prepared for a run of central bank meetings and corporate earnings reports. Export demand gave some support early in the session after USDA data showed weekly export inspections improved both week on week and year on year. The November contract settled 12 cents lower at $12.29-1/4 a bushel, while the January contract finished 9-1/2 cents down at $12.43. December soymeal dropped $5.60 to $334.60 a ton, and December soyoil slipped 0.30 cent to 66.71 cents a pound. The USDA said the harvest was 79% complete as of Sunday, in line with expectations and above the average estimate of 10 analysts in a Reuters poll. China's Sinograin sold 172,240 metric tons of imported soybeans, or 33.7% of the total volume, according to Mysteel.

why it matters

A stronger dollar makes US supplies more expensive for overseas buyers, so currency moves feed directly into expectations for soybean demand. Harvest pace and Chinese sales of imported beans remain the key near-term signals for traders.

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