May 19, 2013
Soy erases gains to end lower
US soybeans erased the day's gains to end slightly lower on Tuesday before a key US government crop report as a rally in the dollar overwhelmed expectations that a move by China to stimulate the economy could increase demand.
Technical buying had supported the benchmark November contract - which has tumbled 13 percent from its all-time high of $17.94-3/4 per bushel set on Sept. 4 - after it closed above the 100-day moving average of $15.36-1/4 on Monday.
The US Department of Agriculture's monthly report on Thursday could help chart the next course of the drought rally that took prices to record highs this summer before retreating amid profit-taking and pressure from the advancing harvest.
The crop progress report said 58 percent of the soybean crop was harvested as of Sunday, below expectations for 61 percent.
The tally compares with 54 percent and 41 percent, respectively, in the previous week.
Corn at the Chicago Board of Trade finished flat while wheat pared gains after the dollar strengthened, climbing 0.59 percent by 15:17 p.m. CDT (2017 GMT) on safe haven buying amid nervousness over US third-quarter corporate earnings.
Wheat was supported by expectations the USDA would reduce its estimate of production in leading exporters Australia and Russia and trim its forecast of global wheat stocks.
November soybeans, which finished 1.5 percent off the day's high, were supported earlier by China injecting cash into its currency markets, which was seen by analysts as a possible precursor to more stimulus the world's No 2 economy.