US MIDDAY: soyabeans firmer

04 Dec, 2004

Soybean futures at the Chicago Board of Trade were firm early Friday as traders covered short positions before the weekend. The market was due for a bounce after closing lower the past six sessions, traders said. The nine-day relative strength index for the January contract neared oversold technical levels closing Thursday at 34, just above the 30 benchmark viewed as a oversold market.
CBOT soyabeans were 1 to 2-1/2 cents per bushel higher by 10:30 a.m. CST (1630 GMT). January soya was 2-1/2 cents higher at $5.23-1/4 per bushel.
ADM Investor Services and Cargill Investor Services each bought 300 January, traders said.
This year's record-large 2004 US soya crop and a lagging export pace have acted as an anchor on the market.
Good crop weather in South America leading to outlooks for a big 2005 soya harvest also has weighed on prices this week.
Soymeal futures were up on spillover support from soyabeans. The market was 30 cents to $1.30 per ton higher, with December up $1.30 higher at $153.30.
The market opened weaker. Viewed bearish was the fact that 117 deliveries were posted against the December contract on Friday. Customers of Man Financial, Iowa Grain and R.J. O'Brien stopped the soyameal.
Meal registrations with the CBOT were unchanged at 243 lots on Thursday night.
CBOT soyaoil futures rose early on a short-covering bounce before the weekend. Also supportive were light December deliveries of only one lot on Friday and talk that China bought South American soyaoil, traders said. The market was 0.10 to 0.16 cent per lb higher, with December was up 0.15 at 20.31 cents.

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