Soyabean futures at the Chicago Board of Trade closed mostly lower on Thursday after a choppy session, traders said. The lead contract November rose 6-1/2 cents per bushel on follow-through technical buying. But when the market failed to break through $5.95-1/2, it pressured prices into the close.
Commercial hedge pressure also surfaced after country movement picked up with this week's rally. November soyabeans closed slightly lower, down 3/4 cent at $5.88-1/4. Other contracts for this marketing year settled 1/2 cent higher to 1-1/2 cents lower.
Commodity funds bought about 4,000 soyabeans. On the commercial side, Bungle was featured selling 800 November, traders said. The market was poised for a setback after closing about 25 cents higher on Wednesday after the USDA issued monthly crop figures that were smaller than traders expected.
But the government's October crop estimates and US soya stocks were still bigger than the previous month. "The fundamentals certainly don't support yesterday's rally. But psychologically and technically, the market has its eyesight at $6.
So we're probably not going to see much of a back-off in terms of aggressive selling until we get closer to those levels," one cash-connected CBOT trader said.
Commodity funds bought 15,000-18,000 soyabean contracts on Wednesday, led by Refocus purchase of around 6,500 lots, traders estimated. The harvesting of a large US soya crop loom over prices.
Meteorlogix on Thursday said there should be no significant harvest delays over the next five days, but it may become wetter in the Midwest next week.
Cash basis bids for soyabeans in the Midwest on Thursday were steady to weak after sales picked up when the CBOT rallied on Wednesday. The soyameal market was supported by meal/oil spreading as traders lifted their oil/meal spreads, traders said.
The featured player in soyameal was Reface buying 1,000 December soyameal, but it was selling soyaoil, pit traders said. Soyaoil had gained on soyameal for the past three weeks amid prospects for increased demand for soya-based bodiless.
The trend reversed on Thursday as soyaoil closed lower. October soyameal settled $1.80 per ton higher at $175; December was $1.70 higher at $177.60.
October soyaoil was down 0.30 cent at 23.80 cents per lb., and December was down 0.30 cent at 23.89 cents. Weak US cash soyameal markets kept a lid on the rebound in futures, traders said.
Profitable crush margins due to an ample supply of cheap beans encouraged processors to crush and build supplies. The CBOT November-December crush closed at 65.26 cents per bushel, up 1.19.
The National Oilseed Processors Association will issue its September crush data on Friday. Analysts are expecting a September crush of 122 million to 124 million bushels, close to an August crush of 123.2 million.
In the overnight delivery market, there were 36 soyameal deliveries posted against the October contract on Thursday. Prudential Securities customers issued and stopped the soyameal.
Registrations with the CBOT were unchanged at 251 lots. There were no soyaoil deliveries and CBOT registrations were unchanged at 4,519 lots. On Friday is the last trading day for October soyameal and soyaoil. Malaysian palm oil futures closed narrowly mixed overnight, with traders awaiting fresh leads.
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