Soyabeans firm on mild recovery

03 Dec, 2004

Soyabean futures at the Chicago Board of Trade rebound slightly on Wednesday after nearly a week of lower closes, traders said. CBOT soyabean futures were 1-1/4 to 3 cents per bushel higher by 10 am CST (1600 GMT). January was 1-3/4 cent higher at $5.36-1/2. The biggest jump was in the November 2005 contract, which was up 3-1/4 cents at $5.68.
There were indications for light commercial buying, traders said. Cargill Investor Services, ADM Investor Services and ABN Amro each bought 100 to 200 January. November 2005 is the first month of the next year's marketing year.
Uncertainty about the spread of soya rust during next summer's growing season remains supportive. Asian soya rust was confirmed in Missouri, South Carolina and Tennessee this week, bringing the total to nine US states with soya rust.
The disease can cut yields by up to 80 percent in infected fields. But large global oilseed end stocks, reflecting this year's record-large US soya harvest, and forecasts for a huge South American soya crop should continue to loom over prices.
Export news also cast a bearish tone. Taiwan passed on a tender for 40,000 to 60,000 tonnes of US soya due to high prices. There was also lingering industry talk from late Tuesday that China may have rolled back one to two cargoes of US soyabeans to January, traders said.
Soaring ocean freight rates were deterring US export business, traders said.
Midwest cash markets were steady to firm amid quiet farmer sales at interior locations. CIF values at the US Gulf were steady but dealers were seeing a pickup in movement as farmers were delivering beans they recently sold.
Soyameal futures were $1.30 to $2.50 per ton higher, following soyabeans. December was up $1.30 at $155.50. Also supportive was fresh talk of a slowdown in US crush due to poor margins.
Processors were paying up for soyabeans, which was cutting into crush margins. There were 239 meal deliveries against the December contract on Wednesday. A customer of FC Stone stopped 90.
Registrations with the CBOT were unchanged at 243 lots late on Tuesday. Soyaoil futures were setting back after oil/meal spreading boosted soyaoil prices on Tuesday. The oil market was 0.01 to 0.12 cent per lb lower, with December down 0.12 at 20.5 cents. There were 113 soyaoil deliveries posted on Wednesday, with a customer of Prudential Securities stopping 77. CBOT registrations fell to 1,496 lots from 2,260 last on Tuesday.
Malaysian palm oil futures closed weak.

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