GRAINS-Soybeans, soymeal drop by daily trading limits
* Soymeal drops daily $20 limit after climbing limit on Monday
* Plunging cash soybean bids drag down futures prices
* U.S. weather looks favorable for corn, soy development
(Updates throughout with U.S. trading; changes dateline, pvs dateline HAMBURG/SINGAPORE) CHICAGO, July 24 (Reuters) - U.S. soybean and soybean meal futures fell by their daily trading limits on Wednesday as cash bids for the oilseed plunged across the Midwest and farmers sold some of their limited old-crop supplies. Soymeal slid by the exchange-imposed limit of $20 per short tonne after climbing by the limit on Monday. A recent rally in soy futures and forecasts for beneficial weather sparked selling by farmers, who want to take advantage of strong prices for tight old-crop supplies before the autumn harvest, traders said. Soy processors and livestock producers, who feed soymeal to animals, are hoping a massive harvest will replenish inventories that are expected to decline to a nine-year low by Aug. 31. "We've got farmer selling that is pressing the market, along with the fact that the end user doesn't want to get caught with too abundant supply of old crop," said Don Roose, president of U.S. Commodities. "It's all a cash-led type of market." Chicago Board of Trade August soybeans fell 4.8 percent, or the 70-cent daily limit, to $13.92-1/2 a bushel. August soymeal tumbled 4.1 percent, or $20, to $467.80 per short tonne. The outlook for the U.S. soy and corn harvests was favourable, with cooler temperatures and light rain over the next week to 10 days expected to benefit the crops, according to World Weather Inc. The beneficial U.S. weather conditions are arriving just as corn is starting to pollinate, the most important period of development for determining the size of the harvest. September corn shed 1.6 percent to $5.14 a bushel, while new-crop December corn slipped 0.4 percent to $4.83-3/4 a bushel. Nearby futures suffered steeper losses than the new-crop because ethanol and livestock producers are delaying purchases until after harvest begins, said Sterling Smith, futures specialist for Citi. "As the forecast continues to show good conditions for pollination, users are more willing to hold off nearby purchases and wait," he said. Wheat found support after it dropped to its lowest level in more than three weeks on Tuesday. The most-actively traded September wheat contract rose 0.8 percent to $6.59 a bushel. Iraq issued a tender to buy at least 50,000 tonnes of wheat with origins from the United States, Canada or Australia, the ministry said. Earlier this week, traders said Iraq bought 50,000 tonnes of Australian wheat for milling purposes and made the purchase for well over the lowest offer of lower-quality Russian wheat. Traders also were waiting for the results of a tender from Egypt, the world's top wheat importer.
Prices at 9:58 a.m. CDT (1458 GMT)
LAST NET PCT YTD CHG CHG CHG CBOT corn 516.50 -6.00 -1.2% -26.0% CBOT soy 1392.50 -70.00 -4.8% -1.9% CBOT meal 467.80 -20.00 -4.1% 11.2% CBOT soyoil 44.08 -0.69 -1.6% -10.3% CBOT wheat 658.75 5.25 0.8% -15.3% CBOT rice 1594.00 17.00 1.1% 7.3% EU wheat 190.75 0.50 0.3% -23.8% US crude 106.72 -0.51 -0.5% 16.2% Dow Jones 15,543 -25 -0.2% 18.6% Gold 1333.89 -13.60 -1.0% -20.3% Euro/dollar 1.3234 0.0013 0.1% 0.3% Dollar Index 82.0760 0.1310 0.2% 2.9% Baltic Freight 1117 -10 -0.9% 59.8% * All grain and oilseed prices for second position. Paris futures prices in
Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel.
(Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapre; Editing by Marguerita Choy)