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Chicago Board of Trade soybean futures ended weaker on Friday, turning lower late on month-end position selling and ahead of the three-day holiday weekend, traders said. CBOT markets will be closed Sunday night and during Monday's day session for the US Labour Day holiday, reopening Monday night for e-trade.
September soybeans ended 2-1/2 cents lower at $8.68 per bushel and the more active November closed 2-1/2 weaker at $8.82-1/2. The weaker close was the reverse of the earlier trend when soybeans rallied in unison wheat. When wheat turned weaker on profit-taking after notching an all-time high of $8.07-3/4 per bushel in the December contract - soybeans, soymeal and soyoil deflated from their highs - but held mostly firm until late Friday.
Soymeal closed 20 cents to $2.70 per ton lower, with September down 20 cents at $239.80. CBOT soyoil ended mostly firmer amid higher New York crude oil markets - a supportive technical signal. Soyoil settled 0.23 cent higher to 0.06 cent per lb weaker; September was up 0.21 cent at 36.54 cents.
Commodity funds sold 1,000 soybean contracts, about 500 soymeal and were even in soyoil. Volume was strong across the complex. Estimated soybean trade was 114,505 futures and 29,046 options. Soymeal volume was pegged at 54,121 futures and 3,753 options. Soyoil trade was estimated at 48,051 futures and 2,573 options. Worries about a smaller southern Midwest soy crop due to heat and dryness during August, with no relief in sight for the weekend underpins the soybean market. Additional support stems from strong demand global demand for veg oils, a rising European rapeseed market and firm feed prices in Europe.
However, big first-day deliveries against the September contract in soy, meal and oil added some pressure to the nearby spreads early - especially in soybeans and soyoil.

Copyright Reuters, 2007

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