Soyabean futures at the Chicago Board of Trade were choppy early Friday, turning weak early on follow-through selling from Thursday and rain forecasts for South America's crop region beginning this weekend, traders said. May, July and November soyabeans dipped to contract lows early in the session. But March remained at a premium to May due to the tight pipeline of nearby beans. US farmers' firm hold on soyabeans underpinned the cash market, with exporters and processors scrambling for beans.
March soyabeans were 1-1/2 cent lower at $5.14-1/4 per bushel by 10:17 am CST. May was 1-1/4 weaker at $5.12-3/4, sliding to a low of $5.12-1/4. The other months were 1/4 to 1/2 cent lower.
Volume was light early in the session after Thursday's aggressive fund-led sell off. The featured player was ADM Investor Services, on both sides of the market, floor traders said.
The nine-day relative strength index for March fell to 39 from 45 by the close on Thursday, nearing the benchmark 30 level that technical traders view as an oversold market.
Japanese Finance Ministry data released on Friday showed Japan's oilseed crushers reduced soya crush volumes in 2004, reaching the lowest level in 25 years. Soya crushing margins were squeezed by an influx of cheap soyabean meal and oil from overseas.
Soyameal futures followed soyabeans lower, down 30 to 70 cents per tonne. March was down 50 cents at $154.40.
Firm US cash soyameal markets also remain supportive.
The soyaoil market was choppy, opening firm then turning lower as soyabeans weakened. March soyaoil was down 0.05 cent at 19.38 cents per lb. The market was technically oversold after making a series of contract lows this month. The nine-day relative strength index for March was hovering at 34 early Friday, just above the 30 level viewed as an oversold market.
Large global vegetable stocks have pressured the oil market since early January.