Soyabean futures at the Chicago Board of Trade fell on Wednesday, setting back from this week's technical bounce with weakness in soyaoil contributing to the sell-off, traders said.
November soyabeans were 4-1/2 cents lower at $5.73-1/2 per bushel and January was 4-3/4 down at $5.85-1/2 by 11:10 am CDT (1610 GMT). December soyaoil was down 0.30 cent per lb. at 23.48 cents, and the deferred were 0.31 to 0.40 weaker.
Weakness in the energy markets set a softer tone in soyabeans and soyaoil. Both failed to rebound when crude oil turn around, pressured by technical selling.
Traders were unwinding oil/meal spreads put on in the month amid a push for more renewable fuels like soya-based bodiless. UBS Warburg sold 500 January soyabeans; Tenneco and Randy Financial each sold 3000-400 January soyaoil, traders said.
Harvest of a big US soyabean crop loomed over prices, especially with exports lagging last year's pace. Chinese interest in US soyabeans continues to surface but demand was viewed routine at current levels, traders said.
Worries that the spread of bird flu will cut soyabean and soyameal demand remains bearish. Soyameal is major poultry feed. There were some concerns about a slowed planting pace of soyabeans in northern Brazil due to dryness and wet soils in the south.
It was season to give the market much of a lift but traders said they were monitoring the situation. The US soya harvest was wrapping up, helped by clear weather forecast this week.
Conditions should be dry during the next five days across the Midwest, with temperatures turning warmer on Thursday, Meteorlogix weather service said on Wednesday.
Midwest basis bids for soyabeans were firm on Wednesday amid a lack of fresh farmer sales. CBOT December soyameal was down 90 cents at $170 per ton, with deferred 30 to 80 cents weaker.
The US Census Bureau will release its September crush data on Thursday, with analysts expecting a monthly crush of around 134 million bushels, compared to 130.34 million in August.
US soyameal/hull meal stocks average estimate was 274,700 tons, up from 238,254 tons in August. US soyaoil stocks as of the end of September were seen at 1.635 billion lbs. above USDA's 2004/05 US stocks estimate of 1.571 billion lbs. for the marketing year that ended September 30. Malaysian palm oil futures closed weak overnight, tracking a fresh drop in rival US soyaoil.
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