Soyoil selloff takes soybeans down too after U.S. releases
Wheat falls on disappointing export sales
Soy weakness weighs on corn
WINNIPEG, Manitoba, Dec 1 (Reuters) - Chicago soybeans
fell on Thursday and looked to snap a five-day winning streak as
the U.S. government proposed smaller-than-expected biofuels
blending requirements, sparking a sharp sell-off in soybean oil.
Wheat slid on disappointing export sales, while soybean
weakness dragged corn lower.
The most-active soybean contract on the Chicago Board of
Trade (CBOT) was 2.7% lower at $14.29-1/2 a bushel as of
11:55 a.m. CST (5:55 GMT) after climbing to its highest level
since Sept. 21 on Wednesday.
Soyoil plunged 7.9%.
The U.S. Environmental Protection Agency
increases in the amount of ethanol and other biofuels that
oil refiners must blend into their fuel over the next three
years, but they missed expectations.
Production of renewable diesel, which can be made from
soyoil, is growing, "but not at the unrealistic pace expected by
fund managers," said Arlan Suderman, StoneX chief commodities
Soyoil was also vulnerable to selling because it has
built a big premium over palm oil, a rival vegetable oil, and
because funds hold long positions, said Jim Gerlach, president
of A/C Trading.
"(Soy) oil, which has been the shining star for quite
some time, is taking it on the chin."
Soybeans and wider commodity markets have previously been
buoyed by signs China is softening its tone on COVID-19 rules
after rare public protests in the world's second-largest
CBOT wheat was down 1.3% at $7.85-1/2 a bushel amid
tough competition from Russian and Black Sea supplies, and corn
gave up 1.1% to $6.59-1/2 a bushel.
The U.S. Agriculture Department (USDA) said that export
sales of wheat totalled 162,500 tonnes in the week ended Nov.
24. That was below the low end of analysts' forecasts that
ranged from 300,000 to 725,000 tonnes.
USDA reported weekly corn export sales of 632,700. That
compares with market expectations for 475,000 to 1.1 million
(Reporting by Rod Nickel in Winnipeg, Julie Ingwersen and Mark
Weinraub in Chicago, Gus Trompiz in Paris and Naveen Thukral in
Singapore; Editing by Subhranshu Sahu, Uttaresh.V, Sherry
Jacob-Phillips and Mark Porter)