Soybean futures at the Chicago Board of Trade slipped on Friday on a technical breakdown, with the November contract falling below a key support level at $5.66-1/2, traders said.
The move came before first notice day for November deliveries on Monday. Concerns about global feed demand amid the spread of bird flu remain bearish along with a lagging export pace for US soybeans.
November soy was 6-1/2 cents per bushel lower at $5.64-1/2 by 11:40 am CDT (1640 GMT). January was 6-1/2 lower at $5.77.
The $5.66-1/2 level in November soybeans was key support, after the market dipped to that level on Monday - filling a chart gap leftover from the October 12 crop report.
Funds were selling soybeans, traders said. Refco sold 1,000 January and UBS Warburg sold 500 January.
Firms were rolling their November positions before the start of the delivery period on Monday. Large deliveries were expected as the board price was higher than the price of soybeans at CBOT delivery points on the Illinois River, traders said.
There were no concerns about the final harvest of soybeans as the weather should be mostly dry this weekend, said Meteorlogix weather service.
Midwest soybean basis bids for soy firmed early Friday as harvest was slowing and processors tried to source enough beans to replace their crush.
Taiwan passed on an export tender for 40,000 to 60,000 tonnes of US soybeans overnight because prices were too high.
Also bearish was generally satisfactory weather for planting soybeans in South America. Rains were expected to fall across Rio Grande do Sul on Friday, then turn dry on Saturday. There were some concerns about rain in southern Brazil slowing planting but it was still early in the season. Northern Brazil was in need of rain.
But a shift toward more rain in the north and less rain in the south during the next five to seven days will improve planting conditions, said Meteorlogix weather service on Friday.
The soy products were lower following soybeans. December soymeal was $1.40 per ton weaker at $169.10, with the deferreds 10 cents to $1.40 lower. December soyoil was 0.15 cent weaker at 23.23 per lb, with back months 0.10 to 0.20 cent down. Rand Financial sold 500-600 soybean oil contracts.
CBOT soymeal retreated from Thursday's climb which was sparked by tighter-than-expected US soymeal stocks. South Korea's purchase of 110,000 tonnes of South American soymeal offered little support. Concerns remain about the possibility of reduced meal demand amid the spread of the deadly bird flu were bearish.
Steady to softer crude oil prices were bearish for soyoil on Friday. CBOT soybean oil has been tracking the energy markets recently due to the outlooks that demand for soy-based biodiesel will rise amid a push for renewable fuels.
Malaysian palm oil futures closed mostly weak overnight, sagging amid little business in the week ahead due to holidays, traders in Kuala Lumpur said.
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