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Soyabean futures at the Chicago Board of Trade were choppy with the nearby months weaker early Tuesday, setting back from a recent climb and on weaker cash markets at interior locations after country sales picked up, traders said. The January soyabean contract spiked to a three-month high on Monday as commodity funds covered short positions, inspired by Chinese buying interest in US soyabeans. However, the overall market tone was quiet in pre-holiday trade amid a lack of news.
CBOT soyabean futures were 2 cents lower to 2 cents higher by 10:15 am CST (1615 GMT). January was down 2 at $5.48 and March was 1-1/2 lower at $5.47.
Country dealers reported increased farmer sales as the CBOT futures market rallied on Monday. Midwest basis bids for soyabeans softened this week due to the movement, especially in the western belt. But CIF soyabeans at the US Gulf firmed as values regained some ground from a steep drop on Monday. Higher barge freight was also underpinning CIF values.
Soyameal futures followed the trend in soyabeans, with the nearbys under pressure after recent soyabean sales.
The CBOT meal market was $1 per ton lower to up $2.50 per ton. January was down $1 at $159.10 per ton.
A fresh supply of soyabeans at crushing plants after country movement increased was weighed on cash soyameal values, traders said. Steep premiums for soyabeans had been underpinning meal offers and pressuring crush margins.
The CBOT soyaoil market was 0.07 cent weaker to 0.22 cent per lb higher after Monday's rally as funds covered short positions. January was down 0.07 at 20.80 cents.

Copyright Reuters, 2004

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