Soyabean futures at the Chicago Board of Trade turned lower early Friday as prospects for a big US soyabean crop and abundant stocks continue to overhang prices, traders said.
Underpinning prices was a large net short position held by speculators, which could spur some short covering before the long holiday weekend. The market was also technically oversold, hovering at 1-1/2 year lows.
CBOT agricultural markets will be closed Sunday night and Monday for pit trading for the US Labour day holiday. The markets reopen Monday night for e-trading. September soyabeans were down 1-1/4 cents at $5.41 per bushel and new-crop November was 2 lower at $5.53-3/4 by 10:35 am CDT (1535 GMT).
Calyon bought 700 November soyabeans and J.P. Morgan sold 200 November. Local traders were also selling November soyabeans. There were big September deliveries of 1,654 lots early Friday, underscoring that fact. The deliveries were met by scattered stoppers.
Private analysts were beginning to release their estimates for the US soyabean crop ahead of USDA's September 12 crop report. The general consensus among traders and analysts is that USDA will raise its estimate in this month's report. Commodity research firm Allendale Inc on Friday projected the US 2006 soyabean crop at 3.109 billion bushels, based on an average yield of 42.05 bushels per acre.
That was above USDA's current forecast for a US soya crop of 2.928 billion bushels, with an average yield of 39.6 bpa. CBOT soyameal and soyaoil were range-bound and choppy. September soyameal was steady at $157.20 per ton, with the deferreds down 20 cents to up 60 cents. September soyaoil was down 0.21 at 25 cents per lb, with the back months down 0.08 to 0.14 cent. Meal was trying to bounce after the weak close on Thursday. The market remains underpinned by firm US cash markets. CBOT soyaoil was setting back from the higher close on Thursday when soyaoil gained on soyameal.
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