Chicago Board of Trade soyabean futures settled mixed on Wednesday with old-crop July lower and new-crop November higher on a correction in the July/November spread which had firmed during the past weeks, traders said.
"The correction was in reaction to a sharp break overnight in the CIF basis," one CBOT soyabean trader said. "But bull spreading was again in vogue late in the (open outcry) session after we heard CIF bids were back where they had been yesterday."
CBOT brokers had been buying the old-crop July contract on worries about tight summer US soyabean supplies and firm cash prices, and selling the defenders on prospects for a good 2004 US soyabean harvest.
Outlooks for lighter US Midwest rain this week than had been forecast on Wednesday also weighed on deferred contracts, the trader added. Forecasts for rain had prompted fears of late planting delays.
CBOT soyabeans settled down 14-1/2 cents to up 10-1/4 cents, with July down 14-1/2 cents at $8.69-1/2 and November up 10-1/4 cents at $6.67-3/4. Commodity fund sold about 1,800 contracts and commercials were net sellers, brokers said.
Term Commodities, Citicorp and ADM Investor Services each spread 300 November/July while Man Financial spread 400 July/November, they added.
In soyabean options trade, ABN Amro bought 2,500 July $10.00 calls and Term Commodities sold 500 July $8.60 puts. Last trading day for CBOT July soyabean options is June 25.
CBOT soyameal ended down $3.70 to up $3.00 per ton, with July down $3.70 at $279.50 and December up $1.70 at $207.50 per ton. Commodity funds sold 700 contracts and commercials were net buyers.
Cargill Inc spread 600 July/August while Tenneco Inc spread 500 August/July late.
CBOT soyaoil futures closed up 0.04 cent to down 0.12 cent per lb, with July up 0.02 cent at 27.36 cents and December up 0.04 cent at 24.23.
Commodity funds were about net even and commercials were net buyers, brokers said. Talk that up to 110 million lbs. of soyaoil was currently being imported into the United States, following the government's latest 2003/2004 soyaoil import estimate of a record 235 million lbs., weighed on CBOT soyaoil, they said.
Overnight losses in Malaysian palm oil futures also weighed on CBOT soyaoil, but chart support held at Tuesday's 5-1/2 month low of 27.12 cents per lb in nearby July, traders said. Cash basis markets across the US Midwest held steady late on Wednesday, following the firm trend, as farmer sales failed to meet demand, dealers said.
Crusher demand for soyabeans remained particularly strong, with processors in Decatur, Indiana raising their basis by another 5 cents and processors in Nebraska raising their basis by 4 cents.
An exception to Wednesday's firm trend was in Morristown, Indiana, where the soyabean basis fell 7 cents. A few grain dealers lowered their soya basis this week in response to the widening spread between the CBOT July and August contracts.
Overnight US soyabean export business was slow. The CBOT July soyabean futures crush margin closed up 6.58 cents at 46.36 cents per bushel, while the August margin ended up 0.99 cent at 71.36 cents.