MUMBAI (Commodity Online): A plethora of bearish influences combined to send CBOT soybean futures to one-month lows on Thursday. A disappointing weekly export sales report, reflecting China canceling previous purchases, set prices on a lower path.

Traders eagerly covered positions bought in Wednesday’s rally following a supportive supply and demand report estimating tighter marketing year ending inventories.

The combination of net export sales reductions and fears that China’s efforts to curb inflation through credit tightening will slow the nation’s buying of soybeans, provided additional pressure for prices, said Bill Nelson, analyst with Doane Advisory Service.

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The advancing of a record South American soybean harvest and the competition the new supplies will bring for U.S. supplies was a another bearish feature that traders faced in Thursday’s session.

Meanwhile, a lack of fresh supportive news left futures without a crutch to lean on, with modest pressure from outside macro markets generating psychological pressure. March soybeans ended 26 ½ cents, or 2.78%, lower at $9.25 1/2 per bushel, and May soybeans settled 27 ½ cents, or 2.87% lower, at $9.30 1/2.

Courtesy: CBE Group

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