US soyabean futures on the Chicago Board of Trade ended mostly lower on Monday after a volatile session that included a 50-cent-per-bushel limit slide then a rebound, traders said. The most active contract, May soyabeans, ended 2-1/4 cents per bushel lower at $14.06-1/2 bouncing from its 50-cent slide to $13.58-3/4.
"The market just thumbed its nose at the reversals from last week. This takes away a lot of downside power in the markets," said analyst Roy Huckabay with the Linn Group.
March soyabeans, in delivery and trading without limits, rallied to end 47 cents higher at $13.88. Soyaoil also ended mostly down and off its lows when most contracts fell the 2-cent trading limit. May soyaoil ended 1.19 cents per lb lower at 62.14 cents.
The only month to settle higher was lightly traded March up 0.95 cent at 61.20 cents. Soyameal was the strongest leg of the complex ending $4.70 to $14.20 per ton higher, with May up $8 at $358.30.
More volatility is expected in the weeks ahead amid the start of the US planting season and the exchange's decision to raise soyabean price limits to 70 cents a bushel and soyaoil to 2.5 cent per lb starting March 28. Commodity funds sold 1,000 soyabean contracts, bought 3,000 soyameal and sold 3,000 soyaoil, traders said.
Volume was moderate to large. Estimated soyabean trade was 198,341 futures and 66,675 options. Soyaoil volume was pegged at 78,706 futures and 6,330 options.
Soyameal trade was estimated at 85,480 futures and 4,031 options. All three soya markets were hit hard last week and again during the on Sunday night session on a technical sell-off.
The break started last week when hedge funds were forced to liquidate positions in different financial arenas to meet margin calls, with the weakness spilling over to commodities. Softer Chinese values for soyabean oil, soyabeans and soyameal were also "sell" signals, traders said. There was talk of China backing away from buying soyabean and soyaoil after a recent buying spurt to re-stock inventories.
But export inspections as reported by USDA early Monday were bigger than expected at 29.857 million bushels, with more than half of the soyabeans headed to China. "Exports were pretty good again today you dip it down here you get new buying," said Don Roose, analyst with US Commodities.
Malaysian palm futures contracts closed lower despite strong export figures for March. Malaysian palm oil exports for March 1-10 rose 45.5 percent to 527,408 tonnes from 362,366 tonnes shipped between February 1 and 10, cargo surveyor Societe Generale de Surveillance said.
There was some pre-report positioning before USDA's monthly report issued on Tuesday. Traders expect the government to trim its 2007/08 US soyabean ending stocks forecast by about 7 million bushels to 153 million, reflecting strong exports.
Midwest basis bids for soyabeans were mixed, firmer at river terminals amid firmer CIF values at the US Gulf while some interior elevators were dropping their basis bids amid slowed movement and nervousness about the markets, cash dealers said.
The South American soya harvest was expected to be gaining momentum. But heavy rainfall in Brazil's Mato Grosso Do Sul and north-west Parana were likely to slow harvest, DTN Meteorlogix said.
Weekly trade data issued by the Commodity Futures Trading Commission late on Friday showed that managed funds cut their net longs in the soya complex, especially in soyabeans and soyaoil. Large speculators reduced their net longs in soyabeans by roughly 16,000 lots to 95,500 contracts as of March 4. In soyaoil, their net longs fell by 7,500 lots to roughly 28,000. Soyameal futures/options, large speculators net longs dropped by 570 lots to 51,400 contracts.
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