The U.S. Department of Agriculture’s report on planting intentions proved to be the news event many were expecting, and the significant selloff in soybeans and soybean meal that has ensued has dropped prices to “limit down” status (that is, the furthest down they can go on the day).
As a result, grains traders are in the market selling other commodities, including corn, which had rallied on the bullish numbers released by the USDA. “There have been a lot of long liquidations,” says Elaine Kub, grains analyst at DTN in Omaha. “I have a feeling as soybeans have been locked limit down that we’re seeing spillover pressure.”
...The relevant soybean contract is the November one traded on the CME — the crops this report is talking about will be available in November. That contract was lately at $10.894 a bushel, down from $11.594 a bushel, or 70 cents, the daily limit. Soybean meal has also reached its limit, with the front-month contract falling to $322.30 per 100 tons from $342.30....
