The soyabean futures market was volatile early on Friday, rallying on the open then dipping lower before bouncing back, as uncertainty about South American crop weather going into the weekend kept traders edgy, floor traders said. The market opened higher after strong commercial stopping of March futures deliveries. Commercial demand for soyabeans in the futures delivery market coincided with talk of export sales to China this week out of the Pacific Northwest. And, soyabean basis bids in the Midwest and at the US Gulf were steady to firm early Friday.
March soyabeans were up 1 cent at $6.21 per bushel at 10:15 am CST (1615 GMT), after climbing 8 cents to $6.28. May was up 1-1/4 cent at $6.28-1/2, while the other months were up 1-1/2 to down 1-1/4 cent.
R.J. O'Brien and ABN Amro each bought 100-200 May. Cargill Inc sold 200 May, traders said.
Volatility has been rampant in the CBOT soyabean market over the past two weeks due to aggressive fund buying, spurred by concerns about a smaller-than-expected South American crop.
That triggered the CBOT to raise its margins to trade soyabeans, soyameal and soyaoil futures for the second time in about a week. The latest changes begin Sunday night.
There were 282 futures deliveries posted against the March contract on Friday, with the Kottke house account issuing 120 lots. They were met by strong commercial stopping with the Term Commodities house account taking 257 lots.
Registrations with the CBOT increased to 524 lots late Thursday from the previous 491 lots.
South American weather was mostly dry on Thursday and overnight but their were conflicting forecasts for rain next week in areas where bean yields have been hit hard by the dryness.
Meteorlogix weather service was calling for hot, dry conditions in Rio Grande do Sul and Parana, Brazil, over the weekend and into next week.
March soyameal was down $2.40 at $184.50 and May was 90 cents at $187.50. The back months were 80 cents to $1 weaker.
There were 625 deliveries posted against the March contract on Wednesday. The Cargill Investor Services house account issued 623 lots but a Prudential Securities customer stopped 595 lots.
Meal registrations with the CBOT jumped to 699 lots late Thursday from the previous 76 lots.
The soyaoil market bounced higher, with some early support stemming from soyabeans. But abundant supplies of world vegetable oils along with deliveries against the March contract should limit the move higher.
March soyaoil was up 0.07 cent at 22.92 cents per lb, with the deferreds up 0.07 to 0.10 cent.
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