Soyabean futures at the Chicago Board of Trade dived on Tuesday on follow-through technical selling after sharp declines on Monday, traders said. Plentiful soya stocks following harvest of this year's record US soya crop and forecasts for a big crop next year in South America continued to weigh on prices. But concerns about the potential spread of rust disease in the 2005 US soya crop remained supportive to new-crop months.
Soya futures were 3-1/4 to 4 cents per bushel lower by 10:44 am CST (1644 GMT). January was 3-1/2 cents lower at $5.36, dipping below its 50-day average at $5.34-1/2.
Overnight export business featured Taiwan setting a tender for Wednesday for 40,000 to 60,000 tonnes of US soya.
And South Korea bought 52,500 tonnes of US soyabeans overnight, US CIF traders said on Tuesday. But concerns about soaring freight rates and their effect on US exports were bearish.
US cash basis bids for soyabeans were firm on Tuesday as the recent drop in prices deterred farmer selling. Soyameal futures were $2.40 per ton lower to 20 cents higher on spillover pressure from Monday and weakness in soyabeans.
December was $1.70 weaker at $155.20. Also bearish were deliveries of 240 lots against the December contract on first notice day. Traders expected 50 to 150 lots. An Iowa Grain customer posted all of them, with the J.P. Morgan Futures house account stopping 198 lots. Meal registrations with the CBOT increased to 243 contracts from three late on Monday. Soyaoil futures were up 0.18 to down 0.07 cent per lb., with December up 0.18 at 20.45 cents.
December was supported by lighter-than-expected soyaoil deliveries on first notice day.
There were 78 soyaoil contracts posted against the December contract on Tuesday. The Tradelink house account issued 60, with stopping scattered among firms.
Traders had expected deliveries of 300 to 400 against the December contract on first notice day. Registrations with the CBOT late on Monday were unchanged at 2,260 lots. Malaysian palm oil futures closed weak.
Commodity Futures Trading Commission data released on Monday showed funds reduced their net short positions in soyabeans and soyameal, while they were nearly unchanged in soyaoil, as of November 23.