Chicago Board of Trade soyabeans dived on Friday as forecasts for warm weather through next week and outlooks for a big US soyabean crop sparked funds to sell before the three-day weekend, traders said.
Prices also came under pressure from renewed concerns about the Soya buying power of Chinese crushers amid widespread talk that an exporter seized up to three US and South American soyabean vessels earmarked for China after buyers defaulted on payments.
There was no confirmation of the talk. Soyabean futures closed 10 cents to 17-1/4 cents per bushel lower. September was down 13 cents at $6.14-3/4 and new-crop November was 16-1/2 cents lower at $6.12-1/4.
Selling escalated after November broke nearby support at $6.20, traders said. Funds sold about 4,000 lots. Cargill Investor Services and Citicorp each sold 600 to 1,000 November, traders said. "They're obviously taking out the frost premium put in earlier in week.
Late on Thursday, FC Stone pegged the crop at a record 2.902 billion bushels. The estimates were released before the US Department of Agriculture's September 10 crop report. USA's currents 2004 Soya crop estimate is 2.877 billion bushels, which was based on crop conditions as of August 1.
Export overnight featured a purchase by Taiwan of 56,000 tonnes of US Soya. Cash basis bids in the Midwest on Friday were mixed, turning weaker in Indiana due to harvest selling but firm in the west, where harvest was still weeks away.
The soyaoil market was also weaker following soyabeans. Soyaoil futures through August 2005 ended 0.15 cent to 0.35 cent per lb. lower, with September down 0.34 cent at 26.23 cents. Malaysian palm oil futures closed mixed but mostly weaker. No soyaoil was posted for delivery on Friday against the spot September contract. CBOT grain markets will be closed on Monday for the US Labour Day holiday. Trading reopens with the e-cbot session on Monday night. Futures volume was on the lighter side. In soyabeans, an estimated 47,084 futures traded. Option trade was active, pegged at 32,901 lots. Estimated soyameal volume was 27,594 futures and 3,633 options. Soyaoil trade was seen at 21,762 futures and 2,881 options.
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