Soybeans slump on lower U.S. exports, cancelled Chinese order

Soybean futures slumped in trading Friday after export sales from the U.S. fell and China cancelled an order, a signal that importers could be switching to South American suppliers.Soybean futures slumped in trading Friday after export sales from the U.S. fell and China cancelled an order, a signal that importers could be switching to South American suppliers.

The U.S. Department of Agriculture stated in a report Thursday that U.S. exporters sold 396,332 metric tons of soybeans in the week ended February 10; that figure is 59 percent lower than the total amount of soybean exports the week prior, according to the USDA. Moreover, China, the biggest buyer, canceled a 120,000-ton purchase from the U.S., depressing export totals.The U.S. Department of Agriculture stated in a report Thursday that U.S. exporters sold 396,332 metric tons of soybeans in the week ended February 10; that figure is 59 percent lower than the total amount of soybean exports the week prior, according to the USDA. Moreover, China, the biggest buyer, canceled a 120,000-ton purchase from the U.S., depressing export totals.

Connor Noonan, an analyst at Castlestone Management in London, told Bloomberg the outlook on soybeans has soured over the past two weeks. "Beans are starting to turn a bit negative, and two weeks of poor sales and cancellations cannot be good," he affirmed.Connor Noonan, an analyst at Castlestone Management in London, told Bloomberg the outlook on soybeans has soured over the past two weeks. "Beans are starting to turn a bit negative, and two weeks of poor sales and cancellations cannot be good," he affirmed.

Friday on the Chicago Board of Trade, soybeans for May delivery declined 2.5 percent, or 35.5 cents, to settle at $13.81 per bushel; for the week, the oilseed is down 1.4 percent.Friday on the Chicago Board of Trade, soybeans for May delivery declined 2.5 percent, or 35.5 cents, to settle at $13.81 per bushel; for the week, the oilseed is down 1.4 percent.

Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said that "we expect at this time of the year a seasonal decline in U.S. exports as importers switch to South American supplies." The "cancellation of 120,000 tons of U.S. beans by the Chinese is perhaps along the lines."  Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said that "we expect at this time of the year a seasonal decline in U.S. exports as importers switch to South American supplies." The "cancellation of 120,000 tons of U.S. beans by the Chinese is perhaps along the lines."