Chicago Board of Trade soybean futures were volatile on Thursday as a round of commercial buying rallied the March by midsession, traders said.
The market went up and down all morning as prices tried to recover from recent losses. CBOT soybean futures turned higher by 11:30 am CST - up 7-3/4 to 2-1/2 cents. March soy was up 7-3/4 at $8.12-1/2 after falling 3-3/4 cents to $8.01.
The latest rally was sparked when commercial Produce Grain bought about 200 March, traders said.
Expectations that the Argentine soy crop would be reduced if its drought continues were supportive, traders said. The Argentine government on Thursday cut its 2003/04 soy harvest estimate to 35-37 million tonnes, compared to its previous estimate at 37 million. They said further cuts were likely if it does not rain soon. Weekend rain was in the forecast.
CBOT soymeal futures were also choppy, following soybeans, trading up $1.40 to down $1.00 per ton. March was 70 cents higher at $252.00. Support stemmed from the Census monthly crush report that pegged US soymeal stocks at the end of December at 297,878 tons, below an average trade estimate for 430,000 and below the December 2002 tally of 337,011 tons.
CBOT soyoil futures were up 0.24 to 0.35 cent per lb, with March up 0.25 at 29.18 cents. The rally in soybeans helped soyoil climb higher.
The December Census crush report underpinned the oil market. Census said US soyoil stocks at the end of December totalled 1.586 billion lbs, below an average of analysts' estimates for 1.616 billion and well below the ending soyoil stocks from December 2002 of 2.4 billion lbs.
USDA's export report showed US soyoil sales last week at 2,600 tonnes, within trade estimates for nil to 5,000 tonnes.
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