Soyabean futures at the Chicago Board of Trade were weaker early Friday as forecasts for warm weather through early next week and outlooks for a big US soyabean crop sparked funds to sell, traders said.
CBOT soyabean futures were 7-1/2 to 11-3/4 cents per bushel lower by 10:20 am CDT (1520 GMT). September was down 8-1/4 cents at $6.19-1/2 and new-crop November was 11-3/4 lower at $6.17. Selling escalated after November broke nearby support at $6.20, traders said.
ADM Investor Services, Citigroup, Cargill Investor Services and Refco were among the early sellers of November soyabeans, traders said.
"I'm surprise how much premium we took out ahead of the three-day weekend. But it looks like they'll get in another day of (soya) harvesting before the storm hits," one-cash connected trader said.
Hurricane Frances, now about 260 miles off Florida's southern east coast, was expected to make landfall along Florida's east coast on Saturday or Sunday, the US Department of Agricultural weather service reported on Friday.
Trade sources said Informa Economics (formerly Sparks Cos.) on Friday pegged this year's soya crop at 2.878 billion bushels, near the record 2.891 billion produced in 2001. Late Thursday, FC Stone pegged the crop at a record-large 2.902 billion.
The estimates were released before USDA's September 10 crop report. USDA's current 2004 soya crop estimate is 2.877 billion bushels, which was based on crop conditions as of August 1.
CBOT soyameal futures were $1.50 to $3.60 per ton lower on spill-over pressure from a drop in soyabeans. September was down $1.70 at $176.00. No soyameal was posted for delivery Friday against the September contract.
Soyaoil was also weaker, 0.10 to 0.30 cent per lb lower, following soyabeans. September was 0.30 down at 26.27 cent. Malaysian palm oil futures closed mixed but mostly weaker.
No soyaoil was posted for delivery Friday against the spot September contract.
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