CBOT soybeans end lower as dollar firms, oil weakens

- Chicago Board of Trade soybean futures ended lower on Thursday, after reaching a two-week peak in the previous session, as a stronger dollar and weaker oil prices curbed a rally driven by talk of Chinese demand, market analysts and traders said.

  • CBOT July soybeans SN26 settled down 9-1/4 cents at $11.22-3/4 per bushel.

  • The most-active November soybeans SX26 ended down 6-1/2 cents at $11.42-3/4 a bushel.

  • Oil prices fell on Thursday to their lowest level since the first trading day of the Iran war, as a U.S.-Iran interim deal to end the conflict, reopen the Strait of Hormuz and ease sanctions on Tehran boosted the global supply outlook.

  • Soybean futures often track crude oil prices, as they are used as feedstocks for biofuel.

  • Strength in the U.S. dollar also weighed on soy markets: The dollar index /.DXY rallied after a Federal Reserve policy meeting reinforced expectations for U.S. interest rate hikes this year. A stronger dollar makes U.S. commodities more expensive for overseas buyers.

  • CBOT July soymeal SMN26 ended $3.50 lower at $301.30 per short ton.

  • Soyoil futures fell for a third straight session, with CBOT July soyoil BON26 finishing down 1.85 cents at 69.69 cents per pound.

  • Chicago markets will be closed on Friday for the Juneteenth federal holiday.

  • The U.S. Department of Agriculture on Thursday confirmed private sales of 120,000 metric tons of soybeans to undisclosed destinations and 132,000 tons of soybeans to China, with both for new-crop delivery.

  • The sales announcement followed days of market chatter that Chinese buyers were seeking U.S. soybeans and might also be interested in buying corn and wheat.

  • In Thursday's weekly USDA export sales report, the agency separately reported weekly export sales of 424,869 metric tons of old-crop soybeans and weekly new-crop sales of 304,083 tons for the week ended June 11.

  • Ahead of the report, analysts expected the government to report net export sales of U.S. old-crop soybeans of up to 300,000 metric tons and weekly new-crop sales of up to 500,000 tons.

  • Market analysts said that going into next week, traders are expected to be looking at updates from USDA crop condition reports for signs of stress in the Midwestern corn and soybean crop.

  • Recent heavy rainfall across eastern Iowa, central Illinois and Indiana, and parts of Ohio has left farmers unable to spray or apply their fertilizer, and the excess water can be damaging to plant health, said Chuck Shelby, a market analyst and broker at Zaner Ag Hedge.