Soyabean futures at the Chicago Board of Trade ended weak on Monday with harvesting of an abundant supply of soya in the United States and generally satisfactory crop weather in South American soya areas weighing on prices, traders said.
"With this much product available and South America coming on, it's pretty hard to be bullish," a trader said. A large amount of soya delivered on the November contract and weak stopping of the soya also were bearish for soya futures, they said. CBOT soya closed 1/4 to 4 cents per bushel lower, with November down 1/4 at $5.64-3/4 per bushel. On Monday was first noticing day for deliveries on the November contract and the total at 800 lots was about as expected.
Traders had anticipated from 500 to 1,500 lots to be delivered. An ABN Amro customer issued 220 lots, the ABN Amro house account posted 309 and an RJ O'Brien customer issued 268 lots.
There was scattered stopping of the soya, one indication of a lack of urgent demand for spot soyabeans. Registrations of soya with the CBOT increased to 1,132 lots from the previous 662.
Exports were quiet over the weekend and the market continues to deal with almost daily talk that China was seeking or buying parcels of US soya.
USDA on Monday said 40.1 million bushels of US soya were inspected for export last week compared with 33.9 million the previous week.
Meteorlogix weather on Monday said there were no significant weather concerns for the harvest of the US 2005 corn and soyabean crops. Meteorlogix also said rainfall in Brazil from Paranoia northward would favour soyabeans and the drier weather in Rio Grande do Soul would improve conditions for fieldwork in preparation for planting soyabeans and corn.
The Argentine government said on Friday that recent rain in Argentina gave dry soils a needed quenching and will facilitate 2005/06 soyabean and corn seedlings.
Cash basis bids for soya in the Midwest late on Friday were firm but river bids were weak because the end of harvest was making barges and rail cars more available.
On Friday's CFTC Commitments of Traders report for futures and options combined showed that as of last on Tuesday, large speculators were long 44,429 lots and short 42,041.
The number of long positions declined 10,587 from the previous report and the number of short positions declined 1,123 lots. Technical support in the November contract at $5.63-1/2 per bushel was broken, driving the contract to a session low of $5.62-1/2.
Resistance was at $5.69-1/2. Soyameal futures closed 90 cents per ton higher to 30 lower with some underpinning stemming from unwinding of oil/meal spreads, traders said.
December was up 90 cents at $169.70 per ton. A sag in soya limited gains and market jitters amid concern bird flu may spread and cut into soyameal consumption.
On Friday's CFTC commitments of trader's report for futures and options combined showed that as of last on Tuesday, large speculators were long 16,136 lots and short 21,590. The number of long positions declined 1,223 from the previous report and the number of short positions increased 2,582 lots. Soyaoil closed 0.32 to 0.47 cent per lb. lower, with December down 0.47 at 22.86 cents per lb. Pit sources said falling crude oil markets and unwinding of oil/meal spreads pressured soyaoil.
Soyaoil has recently been volatile, following the trends in crude oil markets. Soyaoil is an important ingredient in the growing bodiless industry.
On Friday's CFTC commitments of trader's report for futures and options combined showed that as of last on Tuesday, large speculators were long 30,856 lots and short 8,256.
The number of long positions declined 1,685 from the previous report and the number of short positions declined 387 lots. Malaysian palm oil futures closed higher overnight. Traders in Kuala Lumpur said palm gained on short covering, but it could be under pressure when it reopens on Wednesday after India decided to raise the base import prices of palm oils.
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