By Joanna Levin
SOYABEANS hit new contract lows during last weeks trading, driven mostly by the lack of weather problems. The Chicago July futures contract lost 21/4¢ during the week ended 5 June to close at $6.161/4/bushel and another 5¢ on Monday to $6.111/4¢/bushel.
In the midwest bean farmers are enjoying great weather, which looks set to continue. The early start to this years planting and suitable conditions suggest that the US soyabean crop yield will be well above average, exacerbating the markets oversupply this autumn. Farmers have three-quarters of their crop in the ground, well ahead of the five-year average of 57%.
Meanwhile, South America is overcoming its recent logistical problems and flooding the market with exports following its bumper harvest this winter. There is only a 10-day delay for South American exports now, compared with a 40-day delay a few weeks ago.
Soya oil received some short-lived support early last week on concerns of frost damage to the Canadian canola crop, but the oil market soon retreated. The July contract lost 36 points to 25.64¢/lb during the week ended Friday, 5 June and another 3 points on 8 June to 25.61¢/lb.