The Chicago Board of Trade soyabean market ended lower in the nearby months on Friday, easing off highs as wheat dived, traders said. Most of Friday's trade centred on the wheat pit, as the market rallied on USA's updated US wheat estimate showing a production cut, then sank on technical sales by funds.
US stocks data issued on Friday were neutral to bearish for soyabeans, coming in close to what traders expected. Domestic stock forecast grew to a new record level and South America looks poised to raise a record-large 2006/07 crop of 105 million tonnes. "The supply-and-demand report this left us in a pretty neutral status as far as the bean market.
There were really no surprises it was a matter of beans just being pulled down by the action in the grains," said Dale Gustafson, analyst with Citicorp. July soya closed 2 cents lower at $5.85-3/4 per bushel.
The back months through November 2006 ended 1 to 2-1/4 weaker and January through September 2007 closed 1 to 2 cents higher. 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 USA's may estimate for 650 million. "I think the report had a little bit of a bearish tone for soyabeans.
The USDA is looking for a year-on-year increase in next year's world ending stocks for soyabeans and they have slightly boosted this year's and next year's carryover," said Anne Frisk, oilseed analyst with Prudential Financial.
The US Midwest weather forecast was neutral to bearish, traders said. Cooler temperatures and scattered light showers moving across the Midwest crop belt were seen benefiting the young soyabean crop, traders said.
"The Midwest weather maps are just wacky one day they show a ridge, and the next day a two-inch rain. Today, they are kind of neutral, not a lot rain for the Midwest but they don't have a lot of heat either," said analyst Steve Freed with ADM Investor Services. In exports, South Korea wills rotunda to buy 150,000 tonnes of non-GMO US soyabeans on June 16.
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