US MIDDAY: soya drops on profit-taking setback

Chicago Board of Trade soyabean futures were lower early on Tuesday on a profit-taking setback from the late rally on Monday, traders said. The production this year of a likely record large US soya crop and outlooks for a big crop in 2005 for South America continue to weigh on prices, traders and analysts said.
At 10:23 am CST (1623 GMT), CBOT soya was 3-3/4 to 5-1/4 cents per bushel lower, with January down 3-3/4 at $5.53-1/2 per bushel. March was down 5 at $5.49 per bushel.
Commercial and fund buying boosted CBOT soya in late trade on Monday, pit traders said. The commercial demand was also reflected in the barge market, with December CIF soyabeans bid 76 over CBOT Jan on Monday afternoon, up 2 cents, and offered at 84 over, up 4 cents. Midwest cash basis bids were steady.
Export business was quiet overnight. But USDA weekly soyabean inspections on Monday stayed strong at 30.3 million bushels, above trade expectations for 20 million to 25 million bushels. The weak US dollar continues to draw in foreign demand.
On charts, key resistance for March beans was seen at the 100-day moving average of $5.58-1/2. Key support was at 14-, 20- and 50-day MAs, around $5.39 to $5.41 per bushel.
Monday's CFTC commitments of traders data showed funds continued to trim their heavy short stance in soyabean futures in the week ended Tuesday, December 21. They were long 37,562 lots, up 5,510, and short 70,567, up 993 from the week before.
CBOT soyameal futures were lower early on oil/meal spreading. At 10:26 am CST (1626 GMT), CBOT soyameal was $1.00 to $2.00 per ton lower, with January down $1.40 at $160.50 per ton. March was down $1.60 at $160.60 per ton.
Tuesday, December 21, but open interest fell. Funds were long 6,698 lots, down 3,182, and short 28,080, down 1,169.
CBOT soyaoil turned lower following the declines in soyabeans. At 10:28 am CST (1628 GMT), soyaoil was 0.07 to 0.24 cent per lb lower, with January down 0.09 at 21.28 cents per lb. March was down 0.10 at 21.38 cents per lb. Funds were long 15,822 futures, down 1,677, and short 44,096, down 3,349.