Soyabeans close weak on disappointing exports

04 Dec, 2004

Soyabean futures at the Chicago Board of Trade closed lower for the sixth straight day on Thursday, with dismal weekly export sales data setting the tone, traders said. "Then, there really isn't anything new, so the market keeps getting pressured," one CBOT floor broker said. CBOT soya settled 5 to 7-1/4 cents per bushel lower. January soyabeans was down 7-1/4 at $5.20-3/4. Funds were net sellers of about 1,500 lots and commercials were net buyers, traders said.
The US Department of Agriculture said on Thursday US soyabean export sales last week totalled 407,100 tonnes, below trade expectations for 650,000 to 850,000 tonnes. Mexico and China were the top buyers, with 88,200 tonnes and 82,900 tonnes, respectively. China shipped 516,400 tonnes. Concerns about waning demand from China as crushing margins weakens and ocean freight costs soar keeps prices pressured. There was ongoing talk that China either rolled back or cancelled at least two US cargoes of soyabeans this week.
Also worrisome was talk of stricter import policies for soya exports to Mexico, based on fears of soya rust disease in the United States next summer. The soya market continues to struggle with large global stocks after this year's record US soya harvest. Current good conditions for the young South American soyabean crop also remain negative.
Midwest cash basis bids were steady to weak on Thursday. The weakness reflected softer CIF soya values at the US Gulf amid quiet export demand and increased supplies at river terminals after recent country movement.
Soyameal futures closed 50 cents to $1.70 per ton lower, with December down $1.60 at $152. The drop in soyabeans, pushing aside supportive export meal data pressured the market.
USDA said US soyameal sales last week reached 110,600 tonnes, above estimates for 50,000 to 100,000 tonnes.
Talk of US processors slowing down crush due to poor margins underpins futures prices.
Soyaoil futures settled lower, with pressure stemming from the weakness in soyabeans. Soyaoil closed 0.20 to 0.29 cent per lb. lower, with December down 0.24 at 20.16 cents.
Weekly US soyaoil exports failed to stir any bullish excitement.
USDA put US soyaoil sales last week at 9,400 tonnes, within estimates for 5,000 to 10,000 tonnes. More deliveries against the December soyaoil and soyameal contracts weighed on the products, traders said.
In soyameal, there were 239 deliveries on Thursday amid scattered stopping.
Meal registrations with the CBOT late on Wednesday were 243 lots, unchanged from Tuesday.
There were 140 soyaoil deliveries on Thursday.
There were signs of strong stopping, with a prudential customer taking all of the soyaoil.
CBOT soyaoil registrations declined to 1,486 lots late on Wednesday from the previous 1,496.
Funds were net sellers of 1,000 to 1,500 each of soyaoil and soyameal.
Commercials were buyers in soyaoil and they were on both sides in soyameal, traders said.

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