Light deliveries of soyabeans, and possibly none at all, will be posted on Thursday on the January Chicago Board of Trade soyabean futures contract, traders and analysts said. "Zero beans, maybe 200 meal and zero to 200 soyaoil," said Terry Reilly, an analyst for Citigroup's Chicago-based grain trade house.
Reilly and chief Citigroup analyst Dale Gustafson said firm cash markets should keep deliveries of each to a minimum.
Thursday is first notice day for deliveries on the CBOT soya complex January futures contracts.
Other players in the soya complex on Wednesday also agreed that although there is an abundant supply of soyabeans, the modest farmer selling and strong cash markets should keep soyabeans in tight hands and away from the delivery market.
"The basis is a little weaker today (Wednesday) but I still wouldn't look for much soya to hit the street, zero to maybe up to 200 lots," said a veteran CBOT floor trader.
Cash dealers early Wednesday said the CIF Gulf soya basis was a little weaker and farmer selling had increased by midweek. "There were a lot of beans moving yesterday," a river trader said, adding that the pickup in movement was helping to fill the supply pipeline which had been tight in recent days.
The CIF Gulf bid for delivery of soya in December was down 2 cents but still remained at a hefty 74 cents per bushel premium over the CBOT January soya futures contract. That strong cash premium should keep cash soya out of the CBOT futures delivery cycle. Delivery in the first half of January was down 5 cents at 65 cents over CBOT January soya futures, cash dealers said.
Cash merchandisers in the interior US Midwest on Wednesday also reported a steady to weak tone for cash soya following some country movement on Tuesday.
Registrations of soya with the CBOT late Tuesday totalled only 2 lots, unchanged from late Monday.
Registration of a commodity means it is eligible to be delivered. It does not necessarily mean that it will be delivered.
Market observers and traders also don't think very much soyaoil or soyameal will be delivered on Thursday.
"There hasn't been very much delivered in the past, on the November, so I'm not expecting much this time around," a soya futures pit source said.
Cash markets for soyameal and soyaoil also remain at a premium to futures which should keep the delivery total to a minimum.
Registrations of soyameal with the CBOT late Tuesday stood at 183 lots. That's below the 213 lots registered late on Monday. Soyaoil registrations were unchanged at 1,921 lots.
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