Chicago Board of Trade soyabean futures ended mixed on Friday with nearby contracts supported by commercial buying, bull spreads and worries about tight US soyabean supplies through this summer, traders said.
US soyabean supplies are expected to drop to a 27-year low by August 31 as strong demand draws down drought-tightened supplies. "The problem of contracting (lessening) demand isn't with the (US soyabean) export assumptions," said Bill Nelson, analyst at AG Edwards.
CBOT soyabean settled up 9 cents to down 3-3/4 cents per bushel, with July up 9 cents at $8.72 and November down 3 cents at $6.66. Commercials bought 700 lots and commodity funds bought at least 1,300 lots, brokers said.
Randy Financial, Carroll Investor Services, Citicorp and RJ O'Brien spread July/August while Cargill Investor Services also spread July/November. CBOT July soyabean began trading on Friday in the centre of the CBOT soyabean pit and November traded in the top section, the most active area of the pit.
First notice day for deliveries against CBOT soyabean, soyameal and soyaoil futures on Wednesday, June 30. Current wet weather across the US Soya belt was considered beneficial for the 2004 US soyabean crop's growth, a bearish factor for deferred CBOT Soya contracts, brokers said.
Losses were limited after Memphis-based Sparks Cos. forecast on Friday 2004 US soyabean acreage at 74.4 million acres. The estimate lags the government's March intentions figure of 75.411 million acres. Sparks estimated in March that US 2004 soyabean acres would total 74.5 million acres.
CBOT soyameal ended mixed, up $2.30 to down $2.10 per ton, with July up $2.30 at $283.00 and December down $1.90 at $208.30 per ton. Commercials were light net sellers while commodity funds bought about 2,000 lots.
Produce Grain spread 800 August/July and ADM Investor Services spread 400 July/August. CBOT soyaoil futures settled up 0.24 cent to down 0.05 cent per lb., with July up 0.24 cent at 27.48 cents and December up 0.08 cent at 24.04.
Commodity funds bought about 2,000 lots and commercials were net buyers, brokers said. Overnight US soyabean export business was quiet. US Gulf CIF soyabean basis bids were steady on Friday, while US Midwest Soya basis bids were steady to firm, with Nebraska elevators firming their spot bids 4 cents.
The CBOT July soyabean futures crush margin closed down 1.30 cents at 52.88 cents per bushel, while the August margin ended up 1.22 cents at 79.90 cents.