Soyabean futures at the Chicago Board of Trade fell early on Wednesday, setting back from a short-covering bounce Tuesday that pushed prices to a two-week high, traders said.
Weakness in soyameal pulled soyabeans lower, while a technical rally in soyaoil limited the sell-off in soyabeans. Soyaoil was seeing spillover technical buying from Tuesday, when July oil closed above its 50-day moving average. Higher metals and energy markets helped underpin the soyabean and soyaoil markets.
May soya was down 3 cents per bushel at $5.72-1/2 by 10:50 am CDT (1550 GMT). July was 3-1/2 cents weaker at $5.86-1/4.
May soyaoil was up 0.44 cent at 23.69 cents per lb. and July was 0.39 cent higher at 24.10 cents. The weakest of the complex was soyameal. May meal was down $2.90 at $174.80 per ton and July was $3.20 lower at $175.10. O'Connor sold 200 July soyabeans, while J.P. Morgan and Prudential each sold 300 July soyameal, traders said. UBS Warburg bought 1,000 July soyaoil, traders said.
The fundamental outlook for soyabeans remained bearish due to huge US stocks and outlooks for US farmers to plant a record large soya crop this spring.
Midwest farmers were expected to make better planting progress this week than last week, when rains fell across portions of the Corn Belt, a Meteorlogix forecaster said on Wednesday.
Export business was slow, with global buyers turning to South America as its soya harvest picks up momentum.
South Korea tendered to buy 25,000 tonnes of non-GMO US soyabeans on April 27.
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