Lower crop condition ratings helped underpin prices, but talk that China might be temporarily slowing its soybean imports helped grease the late slide. Traders said Smith Barney sold some 1,000 Jan and 500 Nov soybeans on the day. According to traders, a failed attempt at a rally earlier in the day despite fresh supportive news such as a drop in condition ratings, overnight frost in parts of the Midwest and a slow harvest pace was interpreted as a sell signal. As buying interest dwindled above the 10-day moving average, prices retreated, encountering more eager sellers as it moved lower. Talk started circulating late that Chinese importers were temporarily halting or trying to delay soybean imports to a later date.
China is a key importer of U.S. soybeans and is considered a major part of the U.S. export program.
According to cash-connected sources, the Chinese government has been holding cargoes at the docks from 3 to 10 days, supposedly for the purpose of testing the quality of products. Margin-related selling was evident. Monday, the decline in Dec was eventually matched in Oct as a large Northwest cattle feeder sold at least 1,000 contracts. More selling from that source was a feature today as Oct was the biggest loser. This morning, deferred months also declined sharply as funds, feedlots and locals all sold.