Soya mostly lower after volatile session

29 Jul, 2004

Chicago Board of Trade soyabean futures seesawed throughout on Tuesday's session before ending mostly lower as differing views about weather outlooks and a volatile cash basis kept traders on edge, floor brokers said.
CBOT soya futures closed 3-1/2 cents per bushel lower to 1/2 cent higher. Old-crop August ended 3-1/2 lower at $6.65-1/2 after seeing a 26-cent price swing and climbing 17 cents shortly after the open.
Strength came from renewed concerns about a 27-year low in US soya stocks and a step-up in Midwest processor bids. The market was also technically oversold and due for correction.
But it didn't take long for August to lose steam once new-crop soyabeans turned lower. New-crop contracts were higher on 11- to 15-day outlooks for hotter, drier weather moving into the Midwest as soyabeans begin setting pods.
"Even though the longer-range maps had much above normal temperatures coming into the Corn Belt there's certainly a lot of scepticism that the heat will actually be a factor. That brought a lot of choppy trade," said Dan Cekander, an analyst with Fiat Futures.
New-crop November ended unchanged at $5.97 but was also volatile, rallying 10 cents then falling 11 cents. Expectations of a record-large US soya crop, with some talking about a 3.0 billion bushels crop remains bearish.
The soyameal market has followed the recent weakness in soyabeans and remains under pressure from a soft US cash meal market, traders said. CBOT soyaoil futures ended 0.01 to 0.25 cent per lb lower, with August down 0.25 at 24.24 cents, pressured by the lower close in soyabeans.
Estimated soyabean volume was 67,875 futures and 20,531 options, up from 63,449 traded on Monday. Soyameal trade was pegged at 37,199 futures, down from Monday's 39,901, and 2,634 options.
In soyaoil, an estimated 28,868 futures and 3,285 options traded. That compared to 28,832 traded on Monday.

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