Chicago Board of Trade soyabean futures settled lower on Wednesday, pressured by a weakening CIF basis bid, harvest pressure and talk of up to 2,000 deliveries on Friday against November, brokers said.
"There could be 1,000 to 2,000 deliveries posted on Friday," said Dale Gustafson, an analyst at Citicorp. On Friday is first notice day for deliveries against November. "Unless there is a big change in the cash (price), the basis values at some of the delivery locations are just simply below delivery (values)," he noted.
Weak CIF basis bids and lingering talk of cancellations or postponing of US soya purchases by China also pressured futures brokers said. China is the top US soyabean customer. Soyabean futures settled down 2 cents to 10-1/4 cents per bushel, with November down 9 cents at $5.30 per bushel and January down 10-1/4 cents at $5.33-3/4.
Commodity funds sold 3,000 lots, led by sales of January by Clayton Financial, Citicorp and Reface Inc. Late harvesting of the projected record US soyabean crop weighed on CBOT soyabeans, but losses were limited by steady to firm interior US Midwest cash basis bids due to good demand from soya crushers and slow farmer soyabean sales, brokers said.
Soyameal futures settled down $1.20 to $1.60 per ton, with December down $1.30 at $155.30, following losses in soyabean futures, brokers said. Cargill Investor Services, ABN Amro and Reface Inc each sold 200 December, brokers said.
Firm US cash soyameal offers due to good demand from feed mixers and tight soyabean supplies limited losses, they added. Soyaoil futures ended down 0.35 cent per lb to 0.58 cent, with December down 0.58 cent at 21.21 cents.
Produce Grain bought a net 200 December, while Fiat Futures and TransMarket each sold 200 December, brokers said. Losses in soyabean futures and a weak close in rival Malaysian palm oil futures weighed on soyaoil, brokers said.
Traders waited on Friday's US Census Bureau September soyabean crush data. Analysts forecast crush at 121 million bushels and soyabean oil stocks at 1.065 billion pounds.
The report marks the end of the soyameal and soyaoil crop years, and a soyaoil stocks number of 1.065 billion pounds would slightly top the USDA's year-ending stocks estimate of 1.061 billion pounds.
"We would consider it bearish for oil were the report to come in over 1.1 billion pounds," said Bill Nelson, an analyst at AG Edwards & Sons.
The CBOT November/December soyabean crush margin ended down 0.24 cent at 44.97 cents per bushel. On Wednesday's estimated CBOT volume for soyabean futures was 80,613 contracts, compared with Tuesday's trade of 84,839 lots.
Options volume was seen at 7,767 lots. Estimated soyameal futures volume was 21,816 contracts, compared with Tuesday's trade of 25,898 lots.
Soyameal options volume was estimated at 3,362 contracts. Soyaoil volume was estimated at 20,288 lots, compared with Tuesday's trade of 23,578 contracts. Options volume was 4,705 lots.
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