November soybeans are struggling midday and are trading slightly lower. Soybeans found support after the US Dollar turned lower and wheat surged to new session highs. However, a better than expected private estimate for the 2012/13 soybean yield and production has triggered profit taking. Basis remains weak in domestic markets and steady to weaker in the Gulf of Mexico. Some traders are expecting farmers to sell new crop bushels right away due to the historically high futures levels. Underlying support continues to come from thoughts that current price levels have not rationed demand and on the assumption that while soybean plants look good from the road, recent crop tours have suggested that pod counts are very low. Support is also seen from a higher crude oil market and surging US equity markets following this morning's ECB meetings.
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