Soyabean futures at the Chicago Board of Trade closed firm on Thursday after a choppy session, struggling between short covering and worries about demand for US soyabeans after disappointing weekly export sales data, traders said.
January soyabeans closed 1-3/4 cents higher $5.59-3/4 per bushel after falling 4 cents and rising 6 cents. The deferreds settled 1/2 cent to 2 cents higher.
The market recovered amid hesitant selling interest due to floor talk that commodity index funds were poised to make purchases of CBOT agricultural contracts.
"There's talk of more index money starting to come into the market. Outside markets gold, silver, cattle were all up," said one CBOT floor broker.
As a result, the Reuters/Jeffrey's CRB Index of 19 commodity futures unofficially closed up 2.05 percent at 320.71. CBOT also posted on Thursday its new expanded speculative position limits, which go into effect on December 10.
January soya climbed to a high late when buy-stops were triggered at $5.61-1/2. "This time of year it doesn't take much to move the market," said one CBOT soya-complex broker, referring to thinner trade before the holidays.
Spreading picked up as firms rolled January positions before the start of delivery at month's end. Commercials were bull spreaders; funds were bare spreading.
In outright trade, funds were about even. Pressure stemmed from disappointing export sales and worries about future global demand because of the spread of bird flu in China.
The US Department of Agriculture said US soya export sales last week were 370,800 tonnes, near the low end of estimates for 300,000 to 650,000 tonnes.
The sales pace continued to lag a year ago, down 29 percent from 2004, keeping CBOT traders edgy about demand for soya. China was the biggest buyer, with 292,800 tonnes, including 110,000 tonnes switched from unknown destinations and 57,000 tonnes switched from Japan.
Overall good crop weather in South America added pressure. There were some jitters about the dryness in Argentina this week, but rains were expected on Saturday in the southern crop areas and Sunday in the north.
Brazil's No 2 soya producing state, Paranoia, could harvest a record crop of up to 12.3 million tonnes of soyabeans, despite a smaller planted area, the state's agriculture service said.
US Midwest spot soya basis bids were steady to firm, underpinned by a lack of farmer sales and processor demand. Soyaoil came under pressure from reminders of big US soyaoil stocks.
The US Census Bureau said on Thursday domestic soyaoil stocks reached 1.887 billion lbs. in October, compared with the 1.864 billion reported by Census Bureau last week.
December soyaoil closed 0.01 cent lower at 21.04 cents per lb and January was 0.02 down at 21.27. Soyaoil saw wide price swings late amid thin trade, floor traders said.
Commercials bought about 1,200 soyaoil contracts and funds sold about 1,500. CBOT soyameal futures were choppy too, following soyabeans. December soyameal closed 50 cents up at $172.30 per ton and January was 40 cents higher at $172.50.
Funds bought about 500-soyameal contract, traders said. The lack of December soyameal deliveries was supportive, but another round of soyaoil deliveries added pressure to December soyaoil, traders said. There were 1,574 contracts delivered against December soyaoil on Thursday.
Soyaoil registrations with the CBOT increased to 4,623 lots from 4,519. US weekly export sales for soyameal and soyaoil were disappointing. USDA said US soyameal export sales last week totalled 76,100 tonnes, compared with estimates for 75,000 to 150,000 tonnes.
Soyaoil export sales last week totalled 3,400 tonnes, below estimates for 5,000 to 15,000 tonnes.
Malaysian palm oil fell for the fourth straight day on worries about thin sales and surging oil stocks, traders said.