The long liquidation continues at the CBOT with grain and oilseed prices plummeting. Soybeans were able to close slightly higher but Soybeans traded to lows not seen in over a month. Corn prices unwraveled closing down 16 cents into prices not seen since last March. Talk by traders and analysts alike is this mkt has the feel of massive fund liquidation. Analysts say parallels can be drawn to last August to large fund liquidation in all markets. Volume on Tuesday was heavy again indicating this break has more potential downside. Soybean volume was 168,454, Meal was 82,707 and Oil 85,321. Funds were net buyers of soybeans buying an estimated 3,000 Soybeans, 2,000 Oil and 1,000 Meal
Early opening calls, sharply lower: Reports this morning of a tender of 120,000 mt of soybeans to unknown destination. The Senate voted Tuesday 94 to 0 to move ahead with plans to require the CFTC to set limits on large speculators in the energy markets. Some traders say this has the market spooked and could be one reason for the mkt sell-off. Oil world is estimating World 2008/09 Soybean production at 241.2 mmt up 18.5 mmt from last year. Overnight markets are sharply lower this morning indicating the opening will follow suit. The $US is up 16 and September Crude oil is weaker by $1.50. Overnight Chinese Soybean futures and soyoil closed lower, Meal higher.
Top News -- With July 24th deadline looming US EPA says it will not have taken a decision on whether to grant Texas an exemption reducing the amount of ethanol blended into gasoline this year by 50%. -- SemGroup Energy Partners filed for bankruptcy Tuesday following significant trading losses - $2.6 billion in debt -- Senators pass energy market speculation legislation, 94-0; White House officials say they're disappointed the legislation doesn't provide for additional production incentives. Senate votes unanimously to continue debate regarding energy speculations - Republicans may seek to attach rider to allow for domestic oil drilling -- Some analysts are suggesting markets are facing an announcment from CFTC soon on limiting speculative trade, either likely in the form of position limits or an increased margin -- Russian ag ministry data shows through July 23, 24.3 mln mt of grain has been harvested, that figure stands 758,300 mt above last year's harvest. Harvest so far has covered 6.5 mln ha, about 14% of the total area expected for harvest. -- Dalian Jan Soybean futures closed off 94 yuan to 4,558 yuan/mt on over 1.1 mln contracts traded; Jan Soymeal futures dropped 50 to 3,742 yuan/mt with over 1.0 mln contracts traded; Jan Soyoil futures sharply lower at 10,404 yuan/mt off -270 yuan -- Malaysian palm oil futures in overnight trade closed 8 ringgit lower at 3,252 yuan/mt -- eCBOT Soybean Vol. 147,107 ; Pit Vol. 18,611 ; Open Interest Change: - 10,066 -- Weather: 6-10 Day Forecast: Below Temps East, Above West. Normal to below Precip. The western Corn Belt will see showers and thunderstorms today. Thursday into Sunday will see chances of showers and thunderstorms in all areas of the Corn Belt. Temps near normal. -- Outside markets. Energy -3.09 at $127.95; Gold & Silver: -9.0 at $939.6 and -0.280 at $17.729 ; US $ trading better vs. Euro and Yen.
Cash Markets
-- CIF Soybeans steady up 3 . July +63 to +70, Aug. +35 to +50, Sept. +25 to +30, Oct. +23 to +28, Nov. +28 to +35 Dec. +15 to +25, Jan. +30 to +40
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