Chicago Board of Trade soyabeans futures slid on Friday, with the lead-month November back below $10 a bushel, pressured by USDA bearish stocks data and month-end profit-taking, traders said. "There was net long liquidation. The catalyst was the big supply numbers in corn and beans were already at a record and they just got bigger," one Chicago trader said.
November soya ended 17-3/4 cents lower at $9.91-1/4. The back months through January 2009 closed 4 to 16-3/4 cents weaker, with the new-crop months gaining on the nearby amid month- and quarter-end positioning, traders said.
The government said a record large 573 million bushels of soyabeans were in the hands of commercial firms and farmers on September 1, which was more than analysts expected.
The average of analysts' estimates was 553 million bushels. "We weren't looking for a bean stocks number like that at all," said Jack Scoville, analyst with The Price Futures Group. The market was also overbought after notching a fresh three-year top on Thursday amid the weakness in the dollar.
And clear skies across the Midwest should speed along the Midwest harvest, with more supplies moving into marketing channels over the weekend. The products followed soyabeans lower. October soyameal settled $6.50 down at $276.30 per ton; the deferred were $2.20 to $7.30 weaker.
October soyaoil ended 0.19 cent lower at 39.49 cents, after hitting 40 cents overnight a 23-year high for a spot contract, tracking the Malaysian palm oil market. Volume was large. In soyabeans, an estimated 130,764 futures and 52,238 options traded. Estimated soyameal volume was 55,060 futures and 3,648 options.
Soyaoil volume was seen at 56,858 futures and 2,716 options. The dollar made new lows for the seventh straight day. That weakness gives importers of US food and feed more buying power, a supportive feature for all Chicago agricultural markets, traders said.
Also supportive is the dry weather in Mateo Gross, Brazil, which is delaying soya planting. Mateo Gross, Brazil's key soyabeans state, is forecast to stay dry over the next 7-10 days, with the next chance of rain expected for the week of October 7, DTN Meteorlogix said.
The overnight delivery market was a mixed bag as first-day deliveries were hefty but there was strong commercial stopping. October soyameal deliveries were at 414 lots, with RJ O'Brien customer taking 288 lots. Traders expected deliveries of 200 to 400 lots. In soyaoil there were 3,309 first-day deliveries with a RJ customer taking 1,630 contracts. Delivery estimates ranged from 1,000 to 3,000 lots. An active harvest weekend was expected across the Midwest, as it should be warm and dry.
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