Soyabean futures at the Chicago Board of Trade were firm early on Friday as the soya/corn spread adjusted, traders said. The price relationship between corn and soyabeans, with CBOT corn hovering at a 10-year high, was encouraging farmers to plant a lot more corn next spring at the expense of fewer soya acres.
Soya was gaining on corn on Friday, trying to secure enough acres to meet next year's crush and export demand. November soya was up 2-1/4 cents at $6.50-1/2 per bushel by 10:40 am CST (1640 GMT). The back months were up 4 to down 2 cents, with new-crop November 2007 up the most at $6.98. In contrast, CBOT corn was down 3-1/4 cents to up 1 cent and new-crop December 2007 corn was down 3-1/2 cents at $3.46-1/2.
The November-January spread was weakening after heavy commercial November deliveries and softer cash markets as farmer sales picked up as the CBOT rallied on Thursday. There were 1,760 deliveries, with the ADM house account putting out 1,137. They were met by scattered stopping. Also, the market was technically overbought after this week's run to a one-year high. The nine-day relative strength for the January contract closed on Thursday at 73 - above the 70 level viewed as an overbought market.
The weekend should be mostly clear, giving farmers a window to move along on the tail-end of their harvest before more rains move in next week, said a Meteorlogix weather forecaster on Friday.
The products were mixed as soyaoil gained on soyameal amid a weaker tone to the cash meal market. Processors were seeing more soyabeans move into their plants, allowing them to back off their spot soya bids which spilled over to lower spot soyameal offers. December soyaoil was up 0.14 cent at 27.64 cents per lb, with the deferred months up 0.20 to down 0.02 cent. December soyameal was down 20 cents at $195.10 per ton. The back months were 30 to 80 cents lower.
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