Profit-taking sends soybeans to mixed close
U.S. soybean futures ended lower Thursday, as investors took profits on prior bets after spot-month prices rallied to seven-month highs earlier in the week.
Chicago Board of Trade soybeans for July delivery finished down 4 3/4 cents, or 0.3%, at $15.27 1/4. The November soybean contract settled up 5 3/4 cents, or 0.4%, to $13.05 3/4.
Traders are banking some profit after gains over much of the past two weeks in soybean futures. Prices have been lifted by tight near-term domestic supplies and weather-related planting delays for this year's crop.
"We saw some good old-fashioned profit taking, especially in spreads," said Jason Britt, president of brokerage Central States Commodities in Kansas City, Mo.
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"The bull spreads have been working extremely well, so some are taking a little money off the top in the face of lower cash prices for physical supplies of the oilseed," Mr. Britt said.
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Analysts said soybean demand appears to be cooling somewhat amid higher futures prices and strong cash-market prices for physical supplies. Some buyers are shifting their purchases to delivery dates later in the year, when supplies are expected to be more readily available.
Cash prices have eased, as farmer selling of supplies increased on recent rallies in futures. Domestic end users have acquired physical stockpiles of soybeans to cover short-term demand needs and trimmed their price bids for near-term supplies.
Meanwhile, "new crop" futures, such as the November contract that represent crops currently being planted across the Farm Belt that will be harvested in autumn rose. Traders shedding some bets on prices declining and the uncertainty surrounding 2013 production due to planting delays underpinned prices, analysts said.
U.S. corn futures finished higher, with tight supplies buoying nearby contracts, while the uncertainty of 2013 production potential supported contracts for deliver later in the year.
CBOT corn for July delivery, the most actively traded contract, finished up 2 1/2 cents, or 0.4%, at $6.63 1/4 a bushel. The December contract settled up 6 cents, or 1.1%, to $5.48 1/4.
U.S. wheat futures finished mixed, with winter wheat contracts pressured by improved weather outlooks for developing crops, while spring wheat futures climbed on the threat of acreage losses due to planting delays.
July wheat futures ended down 3 3/4 cents, or 0.5%, at $6.97 3/4 a bushel at the Chicago Board of Trade. Kansas City Board of Trade July wheat dropped 4 3/4 cents, or 0.6%, to $7.38 1/2 a bushel. MGEX July wheat finished up 4 1/4 cents, or 0.5%, at $8.20 1/4 a bushel.
Write to Andrew Johnson Jr. at email@example.com.
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(END) Dow Jones Newswires
June 06, 2013 15:06 ET (19:06 GMT)
DJ Soybean Futures End Mixed; Profit-Taking Featured->copyright
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