The Chicago Board of Trade soyabean market was firm on early on Friday, but it eased off its early highs when wheat backed off, traders said. CBOT wheat rallied on the open after the US Agriculture Department cut its US winter wheat and all-wheat production estimates.
US and world soyabean data from the USDA remains bearish with supplies at projected record levels for the next year.
July soya was up 1-1/4 cent at $5.89 per bushel by 10:05 am CDT (1505 GMT). The back months were up 1/4 to 1-1/2 cent. O'Connor and Fimat USA each bought 200-300 July; Citigroup and Man Financial each bought 100 July, traders said.
The government's cuts in US winter wheat and all-wheat production lifted wheat prices at all three US futures exchanges, traders said.
USDA estimated US old-crop (2005/06) soya ending stocks at 570 million bushels, near analysts' estimates for 571 million but above the USDA May forecast for 565 million. New-crop soya carryout (2006/07) was seen at 655 million bushels, below estimates for 666 million but above USDA's May estimate for 650 million.
A record-large 2006/07 South American crop forecast of 105 million tonnes was bearish, analysts and traders said. Midwest spot basis bids for soyabeans were steady to firm, supported by a lack of farmer sales.
The soya products were mixed, with soyameal turning lower when soyabeans came off their highs. Soyaoil was firm, rebounding from this week's sell-off and supported by a higher New York crude oil market. CBOT soyaoil has been tracking the energy markets as the US soya biodiesel market booms.
July soyaoil was 0.14 cent higher at 24.79 cents per lb, with the backs up 0.05 to 0.15. July soyameal was down $1.20 at $178.90 and the deferreds were 50 cents to $1.30 weaker.
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