US MIDDAY: soyabeans lower on bull spreading

04 Nov, 2004

Chicago Board of Trade soyabean futures were mostly lower by mid-morning Wednesday, after an early rally led by the November contract due to a firm cash market, traders said. The November/January spread was volatile as November climbed 10 cents before hitting resistance at $5.38.
The deferred months were pressured by the bountiful US soya harvest, with stocks expected to grow. Also weighing were prospects for a big South American crop in 2005, traders said.
Soyabean futures were 1-1/2 cent higher to 3-1/4 cents per bushel lower by 10:25 am CST (1625 GMT). November was up 1-1/2 cent at $5.29-1/2. January was down 1 cent at $5.24-1/2.
There was active bull spreading of November/January early, floor traders said. In outright trade, Calyon, ADM Investor Services and R.J. O'Brien each bought 200 to 400 January, traders said.
There were no deliveries posted against November on Wednesday morning. And soya registrations with the CBOT dropped nine lots to one on Tuesday afternoon.
The soyameal market was up 10 cents to down 70 cents per ton, with December up 10 at $151.20. The back months were setting back after Tuesday's climb, when soyameal futures gained on soyaoil.
The CBOT soyaoil market rebound early after Tuesday's weakness as the meal/oil spread adjusted, traders said. Malaysian palm oil futures closed steady to weak.
Soyaoil futures were 0.07 cent per lb. higher to down 0.04 cent, with December up 0.04 at 21.03 cents.

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