Chicago Board of Trade soyabeans ended mostly firm on Wednesday on light speculative short-covering and fears of possible crop-damaging frost this week, but gains were pared late before on Thursday's crop report, brokers said.
Analysts expected the US Department of Agriculture to boost its September 1 US soyabean stocks estimate, essentially its 2004 beginning stocks figure, and its 2003 US soya production estimate on Thursday.
The USDA will release its data at 8:30 am EDT (1230 GMT). Soyabean futures ended up 2 cents to down 1 cent, with November up 2 cents at $5.33-1/2 and January up 1-1/4 cents at $5.40-3/4.
"The market seems to have lost some of its downward momentum," said Anne Frick, an analyst at Prudential Securities.
"There's also talk of possible losses due to cold Midwest weather, but we're projecting that 168 million bushels of US soyabeans are vulnerable to frost, with possible losses of only 30 (million) to 33 million bushels," she added.
The USDA last estimated this year's US soyabean harvest at 2.836 billion bushels. Soyabeans across the northern US Midwest have developed more slowly than usual this year due to poor growing weather, leaving those fields susceptible to frost damage.
In Minnesota, the third-largest US soya growing state, only 17 percent of the crop were mature as of Sunday, well behind the five-year average of 62 percent, the USDA reported on Monday.
Commodity funds bought between 1,500 and 2,000 lots, brokers said. Commercial FC Stone bought 200 March and ADMIS bought 400 November. Funds held a hefty short position in CBOT soyabean futures of at least 30,000 lots before on Wednesday's bell, several brokers said.
Reports of continued good harvest yields also weighed on soya futures, brokers said. The USDA reported late on Monday 18 percent of the crop had been harvested, above the 15 percent five-year average.
Commodity funds bought 800 lots, while commercial FC Stone sold 1,000 March, brokers said. Cash US soyameal basis offers were steady to weak on Wednesday, dealers said.
Soyaoil futures closed down 0.05 cent to up 0.15 cent per lb., with October down 0.04 cent at 20.81 cents and December down 0.01 cent at 20.82 cents.
Commodity funds bought 2,000 lots, brokers said. Commercial Produce Grain was active, buying and selling 200 December and selling 200 October. Light support also stemmed from a firm close in rival Malaysian palm oil futures, brokers said.
First notice day for October soyameal and soyaoil futures on Thursday. Traders expected nil to 300 soyameal deliveries and up to 500 soyaoil deliveries to be posted on Thursday. Brokers also awaited the US Census Bureau August crush data, scheduled for release at 7 am CDT (1200 GMT) on Thursday.
The CBOT November/October crush margin ended down 1.78 cents at 44.11 cents. On Wednesday's estimated CBOT volume for soyabean futures was 45,796 contracts, compared with Tuesday's trade of 42,932 lots.
Options volume was seen at 23,898 lots. Estimated soyameal futures volume was 31,585 contracts, compared with Tuesday's trade of 24,083 lots. Soyameal options volume was estimated at 3,885 contracts.
Soyaoil volume was estimated at 27,432 lots, compared with Tuesday's trade of 28,755 contracts. Options volume was 1,088 lots.