The Chicago Board of Trade soyabean market was volatile on Thursday, turning up after a weak open, as commodity funds returned to buy more soyabeans, traders said. The March contract was up 5 cents at $6.29 per bushel by 11 am CST (1700 GMT). May was 6 cents higher at $6.35-1/2, while the back months were 6-1/2 to 8 cents firmer.
The market was topsy-turvy as it was poised for a technical correction after a 20-day rally. But commodity investment funds continued to show interest in CBOT soyabeans as they turned to harder assets, like commodities, amid inflationary fears and a weakening dollar.
That was reflected in the Reuters CRB Index of 17 commodity futures early Thursday, which reached its highest point since December 1980.
US government data released before the open was also viewed supportive. The US Department of Agriculture in its monthly crop report trimmed 30 million bushels off its US 2004/05 soyabean end stocks estimate, putting it at 410 million. That was below the average of analysts' estimates for 430 million. But projected stocks are still the highest since 1986/87.
The drop in 2004/05 stocks reflected a 35 million bushel increase in exports and a 5 million bushel reduction in the US soyabean crush.
Global oilseed 2004/05 production was projected at 386.5 million tonnes, down 3.7 million from last month, which included a 4 million cut in the Brazil soyabean crop.
There were 76 deliveries posted against the March contract early Thursday. A customer of Shatkin, Arbor issued 64 lots. A Tenco customer stopped 42 lots and the Bunge house account stopped 28 lots.
Soyabean registrations with the CBOT late Wednesday were unchanged at 623 lots.
The soyameal market was following the up-and-down moves in soyabeans. March was up $3.30 at $185 per ton, while May was $2.90 higher at $188.30. The deferreds were $2 to $3.50 higher.
USDA said US soyameal export sales last week at 140,600 tonnes (old- and new-crop combined), above estimates for 50,000 to 100,000 tonnes.
March soyaoil was down 0.27 at 23.33 cents per lb, May was 0.03 lower at 23.61, while the deferreds were steady to 0.12 weaker.
Malaysian palm oil futures closed lower overnight.
There were 211 soyaoil deliveries posted against the March contract on Thursday. The ADM house account issued 133 lots. Customers of Triland, Iowa Grain and R.J. O'Brien were the key stoppers.
CBOT soyaoil registrations increased late Wednesday to 2,838 lots from the previous 2,780 lots.
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