Chicago Board of Trade soyabean futures ended weak on Wednesday in thin, choppy holiday trading, but there was some support from drier-than-desired crop weather in Argentina, traders said.
CBOT soya closed 3 cents per bushel lower to 1-1/2 cents higher, with January down 1/2 at $6.11 per bushel. March was down 1-1/2 at $6.22-1/4.
"There isn't much to go on today but they could use a little more rain in Argentina, so that may be getting some play, but it isn't a big deal yet," a trader said.
Meteorlogix weather on Wednesday said rainfall in Brazil appeared to be sufficient for soya crop development. In Argentina, more rain is needed to help ease concerns about growth and development of portions of that country's soya crop.
Traders remain cautious amid persistent talk that index funds may soon begin to buy soyabean futures as a long-term hedge against inflation. Technical traders were eyeing the nine-day relative strength index for January, which closed Tuesday at 70.
Traders view an RSI of 70 or more as an overbought market. Technical support in the January contract was at $6.04-1/4 per bushel and resistance was at $6.19-1/2. Exports were quiet overnight.
Traders said there was talk China was seeking and/or buying parcels of US soya. Traders said there was talk China on Tuesday bought a couple of cargoes of soya from Argentina.
Position squaring was noted, with some players rolling out the January contract ahead of first notice day for deliveries on that month on Friday.
Spot soyabean basis bids were mostly unchanged in the US Midwest on Wednesday, as the market remained quiet following the Christmas holiday.
Soyameal ended $1.40 per ton lower to 70 cents higher, with January down $1.40 at $202.40. March was down 90 cents at $202.60 per ton. Traders said Soyameal futures were undergoing a bit of a setback after the fund-generated gains on Tuesday.
Soyaoil was 0.05 to 0.17 cent per lb. lower with January down 0.14 at 20.84 cents per lb. March was down 0.06 at 21.22. Malaysian palm oil futures closed weak overnight.
Traders in Kuala Lumpur said a decline in US soyaoil weighed on the market and trade was light due to a lack of interest ahead of year-end holidays.