US MIDDAY: soyabeans volatile on crop, stocks estimates

13 Aug, 2005

The Chicago Board of Trade soyabean whipsawed on Friday as volatility remained higher after the USDA released its latest US 2005 crop and stocks estimates, traders said. New-crop November soyabean futures saw an 18-1/4 cent range, trading on both sides of Thursday's settlement.
November soya was down 1 cent higher at $6.40 per bushel by 11:20 am CDT (1620 GMT) - after climbing more than 10 cents and through its 100-day moving average. But the market opened lower on prospects that August rains were improving crop prospects, traders said.
Refco was featured player buying 1,000 November, traders said. "The bean number is neutral. But the fact that it's raining out there (means) people are going to second-guess their production number. We did get ending stocks down to 180 (million bushels) with the reduction in demand, I think that's what people are going to key off of that," said one cash-connected trader.
USDA cut 2005/06 soya end stocks by 30 million bushels to 180 million - a reflection of an expected smaller soya crop. The government pegged US soya production at 2.791 billion. That was below an average of analysts' estimates for 2.804 billion and below USDA's forecast in July for 2.890 billion.
Meteorlogix weather early Friday said cooler temperatures and some rainfall over the next few days would benefit filling corn and pod-setting soya in the Midwest.
August soyameal was down $2.60 per ton at $205 and August soyaoil was up 0.28 cent at 22.95 cents. The August crush was about 1 cent higher at 58.06 cents.
The government reduced its 2005/06 end stocks estimate to 1.496 billion lbs, from 1.671 billion last month. But USDA left 2005/06 end stocks unchanged at 250,000 tons, unchanged from July.

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