The Chicago Board of Trade soyabean market dived early Thursday on follow-through sales after the weak close the day before, which came on the heels of a volatile trading session, traders said. The market was long overdue for a downward correction following its month-long rally led by commodity funds that pushed spot soyabean prices to a seven-month high this week. May soyabeans fell 12 cents to $6.61-1/2 per bushel by 10:45 am CST (1645 GMT), while the deferreds were 7 to 13-3/4 cents lower.
Refco and R.J. O'Brien were among the featured players, each selling 500-600 May, traders said.
The market was underpinned early from higher than expected US soyabean export sales from last week. The US Department of Agriculture said early Thursday that 656,600 tonnes (626,900 tonnes was old-crop) of US soyabeans were sold for export last week. That was above trade estimates for 300,000 to 500,000 tonnes.
China remained the top buyer, booking 238,000 tonnes and shipping 509,000 tonnes.
Dry weather in Southern Brazil continued to stress the soyabean crop. But traders have already priced in a smaller Brazilian soyabean crop that USDA's current estimate of 59 million tonnes. Private analysts estimates ranged from roughly 52 million tonnes to 55 million.
Private meteorologist Somar said on Thursday that Southern Brazil and part of Mato Grosso do Sul state will stay dry until next week, increasing drought damage to crops.
CBOT soyaoil futures followed the weakness in soyabeans, with May down 0.24 at 23.91 cents per lb and the deferreds 0.13 to 0.28 lower.
Also bearish were disappointing export sales.
USDA reported early Thursday that last week's export US soyaoil sales were at a minus 3,000 tonnes (old-crop). That was below estimates for 5,000 to 10,000 tonnes.
No soyaoil was posted for delivery on the expired March contract. Thursday, March 31, is the final day for deliveries on the March soyaoil contract. Registrations with the CBOT unchanged at 2,818 lots.
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