Chicago Board of Trade soybean futures closed lower on Friday, setting back from on Thursday's rally with the weakness in corn and soymeal weighing on soy prices, traders said. January soybeans ended 8-1/2 cents lower at $6.77 per bushel and March was down 8-1/4 at $6.92. The other months settled 4 to 7-3/4 cents weaker.
"The bean market has been struggling, March especially with this $7 level. Yesterday we had end-of-the-month orders, today we didn't have it so the market just struggled at these higher levels," said one CBOT trader.
Both corn and soymeal were under pressure, spilling over to soybeans. December soymeal closed $5 lower at $188.40 per ton, after sliding to a two-week low. Soft US cash soymeal markets overhang meal futures. Also, commercial selling of Chicago soymeal near midday pressured both meal and soybeans.
The corn market took profits after making a 10-year high on Thursday. Corn is the leader among the Chicago agricultural markets as bullish outlooks for strong demand attract speculative capital into the markets.
Soybeans follow the moves in corn, trying to prevent further acreage losses next spring. The soy/corn price relationship is encouraging farmers to plant a lot more corn next spring.
Soyoil was the strongest of the soy complex, hovering near a two-year high. Strong global demand for vegetable oils due to the expanding biofuel industry is supportive. December soyoil ended 0.05 cent per lb higher at 29.23 cents. The back months closed 0.05 to 0.15 cent firmer. Heavy December deliveries against soymeal and soyoil on Friday pressured both markets early.
There were 1,108 December deliveries amid strong stopping. Customers of Man's USA Division issued 305 lots and stopped 320, while an RJ O'Brien customer stopped 422. Deliveries on the December contract were very heavy at 3,457 lots. The Bunge house account put out 777 lots after stopping the same amount the previous day, and an LBS customer issued 644. There were signs of commercial stopping, with the Term Commodities house account taking 776.
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