Soyabeans lower on wetter forecast

Chicago Board of Trade soyabean futures closed lower on Friday after a firm start as updated Midwest forecasts for next week turned wetter, easing crop concerns and shaking some weak longs out of the market, traders said.
While there was some disagreement in the extended forecasts, some midday updates added a little more rain and were not quite as hot for next week, traders said. "They're implying the ridge isn't as strong. People are leery going home long with the potential for less stressful conditions," one CBOT trader said.
That was especially true after last weekend when the change in weather outlook from hot-and-dry to cool-and-wet sent soyabeans spiralling down the 50-cent trading limit on Monday.
August soyabeans closed 5-3/4 cents lower at $8.50-1/4 per bushel, after pushing through its 20-day moving average of $8.55-1/2 and climbing to $8.68. New-crop November ended 6-3/4 cents weaker at $8.75-1/4. High temperatures were expected to climb into the mid-80s to mid-90s (Fahrenheit) next week under mostly dry conditions, a DTN Meteorlogix forecaster said.
But the crop was benefiting from heavy rains over the past couple days. Additionally, the western Midwest was expected to have a little more rain than forecast on Thursday, he said. Traders were expecting USDA to report about 2-point improvement in crop conditions on Monday's progress report.
With the approach of August, the key yield-determining time for soyabeans, forecasts for hot conditions stir speculative buying, traders said. The products followed the volatile moves in soyabeans. Soyameal settled $1 to $2.50 per ton lower, with August down $2.30 at $225.20.
The soyaoil market ended 0.14 to 0.37 cent lower, after several months-made contract highs. August closed 0.14 cent down at 37.49 cents, after making a contract high of 38.11. Volume was moderate. In soyabeans, an estimated 100,805 futures and 38,167 options traded. Soyameal trade was pegged at 37,860 futures and 3,705 options. Estimated soyaoil volume was 43,174 futures and 3,178 options.
Commodity funds sold 2,000-3,000 soyabean futures, 1,000 soyameal and 1,000 soyaoil, traders said. Midwest basis bids for soyabeans weakened some more on Friday, pressured by poor export demand and ample nearby supplies, dealers said.
Soyabean sales to China out of South America and the United States have been slow for weeks amid weakening demand for feed, given China's loss of millions of hogs due to disease.