The US Agriculture Department said the soyabean cancellations also included 120,000 tonnes of supplies sold to unknown destinations in addition to the 300,000 tonne deal that China, the world's top buyer of soyabeans, scuttled. China's move suggested that demand for US soyabeans might be slowing down following a robust pace of buying, especially with harvest of the South American crop starting soon.
"I am a little surprised but let's look at it in the bigger scope," said Mark Schultz. "I was even more surprised that they bought as much as they did earlier. It is still a big number, even with the cancellations. We are a little bit surprised just because of where the price of beans are still at in China." At 9:57 am CST (1557 GMT), CBOT January soyabean futures were down 24-1/4 cents at $14.72 a bushel. Prices fell below a key technical support level at the 200-day moving average of $14.72-3/4.
CBOT March corn was 5-1/2 cents lower at $7.18-1/2 a bushel and CBOT March wheat fell 2 cents to $8.06 a bushel. Two major winter storms systems are set to sweep through much of the US Plains and Midwest over the next two weeks leaving welcome soil moisture, said Don Keeney, agricultural meteorologist for MDA EarthSat Weather.
Snowfall ranging from 2 to 4 inches could be expected accompanied by some rain in this week's storm and an even bigger storm is expected next week. January milling wheat in Paris was off 1.25 euros or 0.5 percent at 256.50 euros, with a firmer euro against the dollar adding to downward pressure. Soyabeans fell despite concerns over production shortfalls in South America, with further unfavourable weather forecast. Estimates for the country's 2012/13 soya harvest, which should start in March, vary wildly. Government officials have said they expect a crop of 55 million tonnes or more while worst-case private estimates reach down to 45 million tonnes.