US soy futures ended lower on Friday on profit-taking, weak crude oil and a firm dollar, traders said. CBOT soy closed 10 to 21 cents per bushel lower, with September down 20 at $13.21 per bushel. Pro Farmer pegs 2008 US soy crop 2.930 billion bushels. Outlooks for rain in the United States over the weekend also to weigh. But some of the forecasts indicate only light rainfall.
Traders said there were forecasts for 1/2 to 1 inch of rain next week over 70 percent of the Midwest. Some rain forecast for US Midwest next week but the outlook is uncertain amid volatile tropical storm Fay. Showers this week missed some dry areas in the crop belt. US cash soy steady; farmer selling slow.
September contract trading between key support at 200-day moving average of $13.00-1/2 and key resistance at 100-day MA of $13.78. Nine-day RSI at 54. Soymeal closed $1.30 to $6.30 per ton higher, with September up $2.60 at $360.30 per ton. Unwinding of meal/oil spreads supported meal and pressured soyoil.
Traders said J.P. Morgan a spreader of meal/oil, prompting some unwinding of oil/meal. UBS Warburg bought 100 September meal late. Soyoil closed 0.72 to 1.47 cents per lb lower, with September down 1.41 at 54.15 cents per lb. Soyoil followed soy and crude oil lower and also was pressured by soymeal/soyoil spreading. Daily trading limit expanded to 3.5 cents.
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