Soyabean futures at the Chicago Board of Trade closed lower on Tuesday after a choppy, lightly traded session with few fresh leads to stir much market direction, traders said.
Resurrected concerns about ample soyabean supplies cast a bearish tone to trading after a large US harvest and outlooks for a good growing season in South America, especially after Argentina received beneficial rains this week.
Also bearish was the lagging US export pace from a year ago as global buyers were finding old-crop supplies from South America still available, traders said.
January soyabeans closed 2-3/4 cents lower at $5.92-1/4 per bushel.
The deferred were down 1-3/4 cent to up 1/2 cent. Underpinning prices were firm US cash markets due to slow farmer sales.
Traders have turned their attention to South American weather and the development of young plants as the US harvest was complete. In particular, traders are focusing on Argentina where soyabeans need moisture for emergence and growth.
Rains fell across the soyabean growing areas of Argentina in the past day. Dry conditions or just a few light showers during the next two days is expected with another round of rain forecast for Thursday.
Brazil was mostly dry on Monday. Showers were expected by later this week. Deliveries on the expired November contract totalled 229 lots. A customer of RJ O'Brien delivered 165 lots and an O'Brien customer also was the key stopper of 204.
Registrations with the CBOT sagged to 1,770 lots from the previous 1,790. CBOT soyameal futures closed mixed and range-bound. December soyameal was unchanged at $180.20 per ton, with the deferred 70 cents lower to 70 cents higher.
The soyaoil market was the weakest of the complex on lingering concerns about big US soyaoil stocks as reported by the National Oilseed Processors Association on Monday.
The weakness in vegetable oil prices in Europe added to the soft tone, with all markets under pressure by prospects that the new German government will end special tax breaks for biodiesel.
Vegetable oils are the main ingredient used to produce biodiesel. In the United States, roughly 90 percent of all biodiesel is made from soyabean oil.
December soyaoil closed 0.17 cent lower at 22.34 cents, with deferred down 0.06 to 0.18 cent. Malaysian palm oil futures closed mostly lower overnight, pressured by a drop in rival soyaoil prices and export data for the first half of November, traders said.
Trade data released by the Commodity Futures Trading Commission late on Monday showed that large speculators remained long in CBOT soyabeans and soyaoil futures and options as of last on Tuesday increasing their net longs in soyabeans and decreasing their net longs in soyaoil.
In soyameal, speculators reduced their net short position in futures/options combined.
Commodity funds sold 1,000 soyabean contracts, 1,500 soyaoil and were about even in soyameal, traders said.
Comments
Comments are closed.