Investing.com - Soybean futures were down for the first time in 11 trading sessions on Monday, as investors cashed out of the market to lock in gains from a rally that took prices to the highest level since mid-September on Friday.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD13.2875 a bushel during European morning trade, shedding 0.27%.
It earlier fell by as much as 0.45% to trade at a session low of USD13.2512 a bushel. Prices rose to USD13.3287 on Friday, the highest since September 23.
Soybean prices have gained in 10 of the last 11 sessions leading up to Monday. Futures have rallied almost 10% since the beginning of February, as traders focused on distressed crops in major South American soy growers and on indications demand from top consumer China will remain robust in the near-term.
However, the sharp jump in prices prompted some investors to sell their position and lock in gains on profit taking amid concerns over a slowdown in Chinese economic growth and its impact on the Asian nation’s grain demand.
In a speech to the National People’s Congress in Beijing earlier, Chinese Premier Wen Jiabao said the government will target an expansion of 7.5% this year and set an inflation target of 4%. The government had an 8% goal from 2005 to 2011.
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 U.S. Department of Agriculture.
But prices remained supported close to last week’s five-month high after influential industry group Informa Economics lowered its forecast of Brazil's soybean crop for the 2011-12 marketing season on Friday to 68 million tonnes, down from a previous estimate of 70 million.
Informa also cut its estimate for Paraguay's crop by 2.4m tonnes to 4m tonnes and raised its Argentine soy crop estimate by 1 million tonnes to 47.5 million tonnes.
However markets shrugged off the Argentinean estimate, after the nation’s biggest grains exchange in Rosario last week trimmed its forecast for Argentine soy production by 5 million tonnes to 44.5 million tonnes.
The number also remains below the official USDA forecast of 48 million tonnes.
South America is a major soybean exporter and competes with the U.S. for business on the global market. A downbeat crop outlook there could increase demand for U.S. supplies.
Meanwhile, grain traders were looking forward to the USDA’s World Agricultural Supply & Demand Estimates report for March due on Friday.
Some market analysts expect the agency to raise its estimates for U.S. soybean exports, given increased demand for U.S. supplies and a downward revision in the South American soy crop.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery rose 0.73% to trade at USD6.5675 a bushel, while corn for May delivery added 0.25% to trade at USD6.4913 a bushel.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD13.2875 a bushel during European morning trade, shedding 0.27%.
It earlier fell by as much as 0.45% to trade at a session low of USD13.2512 a bushel. Prices rose to USD13.3287 on Friday, the highest since September 23.
Soybean prices have gained in 10 of the last 11 sessions leading up to Monday. Futures have rallied almost 10% since the beginning of February, as traders focused on distressed crops in major South American soy growers and on indications demand from top consumer China will remain robust in the near-term.
However, the sharp jump in prices prompted some investors to sell their position and lock in gains on profit taking amid concerns over a slowdown in Chinese economic growth and its impact on the Asian nation’s grain demand.
In a speech to the National People’s Congress in Beijing earlier, Chinese Premier Wen Jiabao said the government will target an expansion of 7.5% this year and set an inflation target of 4%. The government had an 8% goal from 2005 to 2011.
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 U.S. Department of Agriculture.
But prices remained supported close to last week’s five-month high after influential industry group Informa Economics lowered its forecast of Brazil's soybean crop for the 2011-12 marketing season on Friday to 68 million tonnes, down from a previous estimate of 70 million.
Informa also cut its estimate for Paraguay's crop by 2.4m tonnes to 4m tonnes and raised its Argentine soy crop estimate by 1 million tonnes to 47.5 million tonnes.
However markets shrugged off the Argentinean estimate, after the nation’s biggest grains exchange in Rosario last week trimmed its forecast for Argentine soy production by 5 million tonnes to 44.5 million tonnes.
The number also remains below the official USDA forecast of 48 million tonnes.
South America is a major soybean exporter and competes with the U.S. for business on the global market. A downbeat crop outlook there could increase demand for U.S. supplies.
Meanwhile, grain traders were looking forward to the USDA’s World Agricultural Supply & Demand Estimates report for March due on Friday.
Some market analysts expect the agency to raise its estimates for U.S. soybean exports, given increased demand for U.S. supplies and a downward revision in the South American soy crop.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery rose 0.73% to trade at USD6.5675 a bushel, while corn for May delivery added 0.25% to trade at USD6.4913 a bushel.