Soyabean futures at the Chicago Board of Trade were weak by midmorning Thursday on continued technical selling, following the early weakness in soyabean oil and crude oil, traders said. With the booming soya biodiesel industry, soyabeans and soyabean oil have been acting more like energy products than foodstuffs.
The soyabean market closed technically weak on Wednesday, with the July contract sliding below last week's low of $5.80 - making it prone to additional weakness, traders said.
July soya was down 1 cent at $5.78-1/2 per bushel by 10:30 am CDT (1530 GMT), trading above a key support level of $5.68-1/4, a low made on April 10 on the day chart. Resistance is pegged at $5.88.
The deferreds were down 3/4 cent to 4-1/4 cents. But prices held in a range early Thursday as there was little news to move the market. Burdensome supplies of US soyabeans and favourable crop weather loom over the trade, and commodity funds hold a net short position and seem hesitant to turn long, traders said.
ABN Amro, Rand Financial and O'Connor each sold 300-500 July, traders said. ADM Investor Services bought 500 July. In overnight export news, Taiwan bought 60,000 tonnes of soyabeans from Brazil.
CBOT traders continue to monitor Brazil amid its financial crisis and farmer protests that have slowed soyabean movement. US exporters were hoping they would see business pick up given the situation in Brazil. But the Brazilian real weakened for a third day on Wednesday, which improves the financial outlook for farmers and eases tensions.
Midwest spot basis bids for soyabeans were steady to firm early Thursday, underpinned by a lack of movement, dealers said. The products were mixed with soyameal gaining on soyaoil as traders unwound oil/meal spreads. Soyabean oil was weak but coming off its lows as crude oil turned up by mid-morning.
July soyameal was up 20 cents at $172.60 per ton, with the backs up 20 cents to $1. July soyabean oil was down 0.10 cent at 25.06 cents per lb, with the deferreds down 0.17 to 0.34.
Comments
Comments are closed.