US soyabean futures closed lower on Friday, falling from an 8-1/2 month high amid weakness in the crude oil market and a firming dollar that made US supplies more expensive on the world market, traders said. The Chicago Board of Trade July soyabean futures contract settled 4-1/2 cents lower at $12.25-1/2 a bushel.
Funds sold 2,000 lots. Soy futures fell sharply at the open as traders locked in profits following Thursday's 4 percent rally. But concerns about crop development in the US Midwest amid cooler-than-usual weather limited the downturn. soyabean prices even ticked higher for a brief period during the trading day.
Tight soy stocks continue to limit bearish moves in soy in addition to bouts of fund buying as a hedge against inflation. Brazilian soyabean basis bids firming late this week, narrowing the price spread between, US and Brazilian soy - exporters. US Midwest basis bids for soyabeans were firm early Friday amid scattered farmer sales-dealers.
Brazil's 2008-09 soyabean crop was estimated at 57.4 million tonnes, down from previous forecast of 57.7 million tonnes, according to Vegetable Oils Industry Association. CBOT July soymeal futures closed down $3.00 at $396.00 a ton, also due to profit taking. Funds sold 1,000 lots. CBOT July soyoil was off 0.61 cent at 39.73, cent lb on pressure from the drop in crude oil prices. Funds sold 2,000, lots. Palm drops 1.9 percent on profit-taking, weak crude.
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