US MIDDAY: soyabeans decline on cash basis markets

04 Aug, 2004

Chicago Board of Trade soyabean futures declined on Tuesday on weak cash basis markets and as ideal US crop weather pointed to good plant development, brokers said.
CBOT soyabeans were down 1-1/2 cents to 7-1/4 cents per bushel, with spot August down 7 cents at $5.91 and new-crop November down 6 cents at $5.60.
TransMarket bought 300 November while DT Trading sold 100 November and Cargill Investor Services sold 200 November, brokers said.
US Midwest cash basis markets were steady to weak early Tuesday, with soya processors at Des Moines and Omaha lowering their basis by 5 cents. A dealer in Cincinnati also dropped his bid 12 cents, dealers said.
US cash basis levels have plummeted in the past month on US farmer soya sales in mid-July, as processors appeared to have adequate near-term soyabean supplies, and on anticipation of an early Mississippi Delta harvest, they noted.
Losses in CBOT soyabean futures were limited early Tuesday because the market was already technically oversold, brokers noted.
The nine-day relative strength index for August soyabeans early Tuesday was 8, well below the benchmark 30 level that chartists view as an oversold mark. The RSI for new-crop November early Tuesday was 20. Soymeal futures were down 80 cents to $3.80 per ton, with August down $3.80 at $189 and December down $1.90 at $172 per ton.
Cash soyameal basis offers were weaker on Tuesday as supplies remained ample, dealers said.
In Canadian crush news, soyabean crush for the week ended July 28 fell 11.3 percent, while canola crush for the week rose nearly 5 percent.
Soyoil futures were down 0.42 cent per lb to up 0.05 cent, with August down 0.36 cent at 21.35 cents and December down 0.18 cent at 20.67 cents.

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