Soyabean futures at the Chicago Board of Trade slightly lower on Thursday, within one cent of Wednesday's close as prices consolidated, traders said.
A strong weekly export number underpinned the market along with technically oversold conditions. But prospects for a large US soyabean crop, that will only add to burdensome supplies, overhung prices.
The spot price is hovering at an 8-1/2 month low and made contract lows in September, January, March and May.
The general consensus among traders is that the USDA will raise its US soy crop forecast in its next monthly supply/demand report. In its August report, USDA forecast the US soy crop at 2.9 billion bushels compared to last year's crop of 3.1 billion. September soy 3/4 cent down at $5.51-1/2 per bushel, after falling to a contract low of $5.48. New-crop November ended 1/2 cent off at $5.64-1/2.
A combination of futures prices at 8-1/2 month lows and a strengthening Brazilian real, which reached a three-month high this week, made US soyabean prices attractive for the first time this summer.
The US Agriculture Department reported before the open that 712,300 tonnes (old and new crop) of soyabeans were sold for export last week, above trade estimates for 400,000 to 600,000 tonnes.
Additionally, the soy market is technically oversold, limiting aggressive selling. The nine-day relative strength index for November soy closed at 24, within the 0-30 level viewed as a technically oversold market.
Export sales data for soyaoil also was disappointing.
September soyameal closed $1.30 per ton higher at $160.50, with the deferreds up 50 cents to $1.50.
September soyaoil closed 0.29 cent lower at 24.86 cents per lb, with the back months down 0.25 to 0.31. USDA said soyameal export sales last week totalled 258,200 tonnes (old and new crop), above the estimates for 75,000 to 150,000 tonnes. Commodity funds sold about 2,000 soyabean lots, bought 1,000 soyameal and sold 4,000 soyaoil, traders said.
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