Chicago Board of Trade soyabean ended mostly lower on Friday on forecasts for warmer, rainy US Midwest crop weather next week, brokers said.
"Actually, the market held pretty well, as people are looking to buy breaks following the shift in supply and demand dynamics in yesterday's USDA report," said James Barnett, CBOT floor analyst for Refco Inc.
The US Department of Agriculture forecast on Thursday a smaller-than-expected 2004 US soyabean crop of 2.877 billion bushels and 2004/05 US soyabean ending stocks of 190 million bushels. The news sent soyabean futures higher on Thursday.
On Friday soyabean closed down 5-1/2 cents to up 1/4 cent per bushel, with September down 3-3/4 cents at $5.86-1/4 and November down 4-1/2 cents at $5.80-3/4 per bushel. Commodity funds were light sellers.
Cargill Investor Services sold a net 400 November, Reface Inc. bought 500 November and commercial Produce Grain bought 200 November, brokers said. CBOT August Soya complex futures contracts expired on Friday, after volatile trade in August soyabean and meal.
August soyabean expired down 35-1/2 cents at $6.52 per bushel; August soyameal ended up $3.50 at $198.50 per ton; and August soyaoil expired down 0.43 cent at 23.57 cents per lb. US Midwest cash basis bids were steady to firm on Friday, dealers said.
Overnight US soyabean export business was quiet, while CBOT traders noted estimates for a record Chinese soyabean harvest and news that China's soyabean imports for the first seven months of the year were down 12.1 percent from the previous year.
Chinese Soya processors have slowed soyabean purchases in recent months due to Beijing's credit tightening and sluggish domestic soyameal demand. China is the world's largest soyabean importer.
China National Grain and Oils Information Centre, the official grain think-tank, estimated the Chinese soyabean harvest at a record 18 million tonne this year, due to favourable weather and expanded acreage.
Soyameal futures settled up $1.80 to down $1.50 per ton, with September up $1.80 at $187.90 and December down 40 cents at $175.30.
Commodity funds bought 1,000 lots, with Clayton Financial a noted buyer of 400 December, brokers said. Commercial Cargill Inc. bought 200 September, 100 October and ADMIS bought 200 December, they added.
Cash US soyameal basis offers were steady to firm on Friday, dealers said. There were 142 deliveries posted against August soyameal on Friday, with a Prudential Securities customer issuing 133 lots. But there was strong stopping, with the CIS house account taking 142 lots.
Registrations increased to 293 lots from the previous 291. Soyaoil futures ended down 0.11 cent to 0.60 cents per lb., with September down 0.11 cent at 23.06 cents and December down 0.20 cent at 22.12 cents.
Commodity funds sold 1,000 lots, with Citicorp selling 400 December, brokers said. Commercials ADM Investor Services and Cargill Inc. were light buyers of September and December and FC Stone sold 200 December, they added.
Speculation that recent cold temperatures could lower oil content in this year's US crop and a firm close in rival Malaysian palm oil prices limited losses, brokers said. The Produce Grain house account, the clearing firm for top global oilseed processor Bungle Ltd, posted 178 deliveries on Friday, while registrations fell to 2,682 lots.