By Joanna Levin
CHICAGO soya prices fell again this week as the market reacted to the same bearish trends that have driven prices lower in recent months.
The large amount of carry-over stocks from last seasons soya harvest have already created an overhang in the market. This years high planted soyabean acreage, excellent growing conditions and poor export demand have also pushed prices lower.
The Chicago August soya bean futures contract suffered a week of declines to closed at 597.75¢/bushel yesterday (27 July), 1.75¢ lower than Fridays close and down 625.75¢ on the week.
Traders reacted to reports over the weekend that a US firm plans to import Argentine soya beans to the Gulf of Mexico.
The market was further hurt by worse-than-expected export figures. Export inspections of soyabeans in the week ended last Thursday totalled only 0.914 million bushels, well below pre-release estimates of 3-6 million bushels and the psychological one million bushel level.
Meanwhile, soya oil prices held their ground. The August futures contract climbed 0.15¢/lb yesterday to settle at 23.91¢/lb, slightly down from its close a week earlier of 24.20¢/lb.
Traders attribute the relative resilience of the oil market to concerns that dry weather could be hurting the oilseed crops in India. But that consideration has been partly offset by weakness in other world vegetable oil markets.