Soyabean futures at the Chicago Board of Trade fell early Friday, reacting to the government's increase in its 2004 US crop estimate and world oilseed stocks, traders said. But a round of short covering helped bring the market off the lows. Firm CIF values early Friday, after soya movement slowed by morning, was also supportive.
CBOT soyabean futures were 1/2 cent higher to down 3-3/4 cents per bushel by 10:32 am CST (1632 GMT). November soya was up 1/2 cent at $5.21, while January was 1-1/4 lower at $5.18-1/2. January hit a low of $5.12, down 7-3/4 cents, shortly after the open.
The US Department of Agriculture on Friday forecast this year's US soya crop at a record-large 3.15 billion bushels. That was close to analysts' estimates, with the average at 3.14 billion bushels. The increase in production and a cut in USDA's export forecast bumped up the US 2004/05 end stocks estimate by 55 million bushels to 460 million bushels.
World oilseed end stocks also increased to 66.43 million tonnes, up from 64.25 million tonnes in October.
The November/January spread was choppy early Friday ahead of expiration of the November contract at 12:01 pm CST. Open interest has fallen to 628 lots, down 694, for Friday's open.
There were 66 lots delivered against the November on Friday morning. Registrations of soya with the CBOT jumped to 66 from the previous zero on Thursday night.
Soyameal futures were $1.40 to $2.70 per ton lower, with December down $1.40 at $148.50. The soyameal market was following soyabeans. USDA left 2004-05 soyameal end stocks unchanged at 250,000 tons.
CBOT soyaoil futures were 0.03 to 0.09 cent per lb lower, pressured early by the weakness in soyabeans. December was down 0.06 at 20.43 cents. Some underpinning stemmed from a drop in soyaoil end stocks to 1.187 billion lbs, from 1.191 billion last month.
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