Investing.com - Soybean futures were down for the first time in three days on Monday, as a broadly stronger U.S. dollar prompted investors to cash out of the market to lock in gains from a rally that took prices to the highest level since late August on Friday.
On the Chicago Mercantile Exchange, soybeans futures for July delivery traded at USD14.4600 a bushel during European morning trade, shedding 0.25%.
It earlier fell by as much as 0.35% to trade at a session low of USD14.4513 a bushel. Prices rose to USD14.5388 a bushel on Friday, the highest since August 31.
Agricultural commodities were affected by outside influences on Monday, as appetite for riskier assets came under pressure amid mounting fears over the outlook for global economic growth.
Weak manufacturing data out of the euro zone and China, combined with political uncertainty in France and the Netherlands weighed on market sentiment, driving inventors into the relative safety of the U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.3% to trade at 79.52.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
Some profit taking also weighed after soybean prices surged by almost 3% on Friday, the biggest daily advance in three weeks amid further evidence demand for U.S. soy from top consumer China remains strong.
The U.S. Department of Agriculture said that U.S. farmers sold 1.219 million tonnes of soybeans last week, the highest in five weeks and above a range of trade expectations for 850,000 to 1.1 million tonnes.
In addition, the USDA confirmed a sale of 230,000 tonnes of U.S. soybeans to China for delivery in the 2012-13 marketing year that begins September 1.
The agency reported another sale of 225,000 tonnes to an unknown destination, thought by many market participants to be China as well.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the USDA.
Meanwhile, ongoing concerns over drought-stricken crop in major South American growers provided further support.
Argentina cut its official estimate for this year's soy crops on Thursday, fuelling speculation the USDA will slash its own estimates on the country’s soy output in its next supply-and-demand report due in early May.
Argentina is a major soy exporter and competes with the U.S. for business on the global market. A downbeat Argentinean crop outlook could increase demand for U.S. supplies.
Soybean prices have rallied nearly 22% since the beginning of December, and are up almost 18% since February, as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
Market participants were looking forward to the U.S. Department of Agriculture’s weekly planting progress report after Monday’s closing bell on the CBOT.
The agency was to release its first soybean planting progress in its weekly crop progress report later in the day.
Elsewhere on the Chicago Mercantile Exchange, wheat for July delivery dipped 0.1% to trade at USD6.2163 a bushel, while corn for July delivery shed 0.2% to trade at USD6.0238 a bushel.
On the Chicago Mercantile Exchange, soybeans futures for July delivery traded at USD14.4600 a bushel during European morning trade, shedding 0.25%.
It earlier fell by as much as 0.35% to trade at a session low of USD14.4513 a bushel. Prices rose to USD14.5388 a bushel on Friday, the highest since August 31.
Agricultural commodities were affected by outside influences on Monday, as appetite for riskier assets came under pressure amid mounting fears over the outlook for global economic growth.
Weak manufacturing data out of the euro zone and China, combined with political uncertainty in France and the Netherlands weighed on market sentiment, driving inventors into the relative safety of the U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.3% to trade at 79.52.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
Some profit taking also weighed after soybean prices surged by almost 3% on Friday, the biggest daily advance in three weeks amid further evidence demand for U.S. soy from top consumer China remains strong.
The U.S. Department of Agriculture said that U.S. farmers sold 1.219 million tonnes of soybeans last week, the highest in five weeks and above a range of trade expectations for 850,000 to 1.1 million tonnes.
In addition, the USDA confirmed a sale of 230,000 tonnes of U.S. soybeans to China for delivery in the 2012-13 marketing year that begins September 1.
The agency reported another sale of 225,000 tonnes to an unknown destination, thought by many market participants to be China as well.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the USDA.
Meanwhile, ongoing concerns over drought-stricken crop in major South American growers provided further support.
Argentina cut its official estimate for this year's soy crops on Thursday, fuelling speculation the USDA will slash its own estimates on the country’s soy output in its next supply-and-demand report due in early May.
Argentina is a major soy exporter and competes with the U.S. for business on the global market. A downbeat Argentinean crop outlook could increase demand for U.S. supplies.
Soybean prices have rallied nearly 22% since the beginning of December, and are up almost 18% since February, as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
Market participants were looking forward to the U.S. Department of Agriculture’s weekly planting progress report after Monday’s closing bell on the CBOT.
The agency was to release its first soybean planting progress in its weekly crop progress report later in the day.
Elsewhere on the Chicago Mercantile Exchange, wheat for July delivery dipped 0.1% to trade at USD6.2163 a bushel, while corn for July delivery shed 0.2% to trade at USD6.0238 a bushel.