Soya futures at the Chicago Board of Trade were firm and quiet early on Wednesday amid a short-covering bounce after Tuesday's drop to a four-month low, traders said. The decline left soya at or near oversold technical areas, leaving open the potential for some short-covering on Wednesday, they said.
At 10:52 am CDT (1552 GMT), CBOT soya was up 2 to 3-1/2 cents per bushel, with August up 2 at $5.59-1/2 per bushel.
Man Financial bought 500 November, FIMAT Futures, Goldenberg Hehmeyer and J.P. Morgan each bought 300 November. Traders said attempts to rally soya futures were limited by a turn to good crop weather in the US Midwest crop region. Showers and moderate temperatures over the next several days will buoy corn and soyabean crops in the US Midwest, a private forecaster said on Wednesday.
Analysts polled by Reuters pegged US soya production this year at 3.028 billion bushels, above the July forecast for 3.010 billion and below last year's output of 3.086 billion.
The analysts pegged US ending stocks of soyabeans for 2005/06 at 533 million bushels, below the July outlook for 545 million. For 2006/07 the analysts pegged soya ending stocks at 572 million bushels, above the July forecast for 560 million. Technical support in the November contract was at $5.73-1/2 per bushel and resistance was at $5.85.
Soyameal was 40 cents per ton lower to 70 cents higher, with August down 10 at $157.80 per ton. Traders said the soyameal market also was attempting to consolidate after the slide of prices early this week. Soyaoil was up 0.12 to 0.33 cent per lb, with August up 0.19 at 26.32 cents per lb.
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