US MIDDAY: soyabeans slide on technical bounce

27 Oct, 2005

Soyabean futures at the Chicago Board of Trade fell early on Wednesday, setting back from this week's technical bounce with weakness in soyaoil contributing to the sell-off, traders said.
November soyabeans were 4-1/2 cents lower at $5.73-1/2 per bushel and January was 4-3/4 down at $5.85-1/2 by 11:10 am CDT (1610 GMT).
December soyaoil was down 0.30 cent per lb at 23.48 cents, and the deferreds were 0.31 to 0.40 weaker.
Early weakness in the energy markets set a softer tone in soyabeans and soyaoil. Both failed to rebound when crude oil turn around, pressured by technical selling. Traders were unwinding oil/meal spreads put on earlier in the month amid a push for more renewable fuels like soya-based biodiesel.
UBS Warburg sold 500 January soyabeans; Tenco and Rand Financial each sold 3000-400 January soyaoil, traders said.
Harvest of a big US soyabean crop loomed over prices, especially with exports lagging last year's pace. Chinese interest in US soyabeans continues to surface but demand was viewed routine at current levels, traders said.
Conditions should be dry during the next five days across the Midwest, with temperatures turning warmer by Thursday, Meteorlogix weather service said on Wednesday. Midwest basis bids for soyabeans were firm early Wednesday amid a lack of fresh farmer sales.
CBOT December soyameal was down 90 cents at $170 per ton, with deferreds 30 to 80 cents weaker.
The US Census Bureau will release its September crush data on Thursday, with analysts expecting a monthly crush of around 134 million bushels, compared to 130.34 million in August.

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