Soyabean futures at the Chicago Board of Trade closed lower pressured by technical sales late on Tuesday, following the moves in US crude oil futures, traders said. When crude oil prices fell below $50 per barrel late on Tuesday, soyabeans dived. The tandem moves in soyabeans and crude oil mimicked on Monday's late dealings, except that price rallied. Sell-stops were triggered on the way down, with July beans falling 7-1/4 cents. But prices rebounded going into the close, bringing the market off its lows late.
Bottom line, trade was choppy and vulnerable to quick price swings, driven mostly by technical signals. May soyabeans settled 1/2 cent lower at $6.18-3/4 per bushel, while July was down 1-3/4 at $6.25-1/2.
May and the nearby spread were underpinned by commercial stopping of Tuesday's deliveries. There were large deliveries of 771 lots posted against the May contract on Tuesday. But the house accounts of Bungle took 221 and ADM stopped 442.
Soya registrations with the CBOT increased to 1,749 from 1,738 late on Monday. Processor demand for beans has been strong as farmers continue to hold beans, focusing on spring planting chores.
Midwest cash basis bids were steady to firm again on Tuesday as movement stayed light, dealers said. The session the market was higher, led by May. Weather was a mixed bag as the current temperatures stalled soyabean planting but the forecast called for a warm-up. "Guys down state (Illinois) that could clearly be out planting are waiting on a forecast for warmer temperatures so they're not planting in very cold soils.
That's a minor supportive factor," said Dan Cekander, an analyst with Fimat Futures. The US Department of Agriculture reported that 8 percent of the US bean crop was seeded as of Sunday, within estimates for 4 to 8 percent. But the planting pace was behind last year's 11 percent and the five-year pace of 9 percent.
Exports were quiet overnight. But business was expected to be quiet with China on holiday, traders said. The soyameal futures market closed weaker, setting back from its recent strength.
US cash soyameal markets were also softer as demand was easing, dealers said. However, there were no deliveries posted against the May contract on Tuesday and meal registrations with the CBOT were unchanged at 78 lots. May soyameal was down $2.60 at $192.40, while the deferred were down $3.20 to up $2.20. The soyaoil market gained on soyameal and closed higher.
May was up 0.05 at 22.50 cents, while the back months were 0.07 to 0.14 cent higher. The July crush closed 2.21 cent lower at 45.28 cents. There were no deliveries on Tuesday against the May contract. Soyaoil registrations with the CBOT declined to 1,353 from 1,393. Malaysian palm oil futures closed firm overnight as players covered short positions from last week's selling, traders said.
The Malaysian market climbed despite a drop in export estimates of palm oil for April from cargo surveyors Interlake Testing Services and Society General de Surveillance.
Fund sold about 3,000 soyabean contracts. They were net sellers in soyameal and close to even in soyaoil, traders said. Volume was on the lighter side. In soyabeans, an estimated 57,324 futures and 15,177 options traded. Soyameal trade was pegged at 23,480 futures and 1,466 options. Estimated soyaoil volume was 17,314 futures and 2,335 options.
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