Soyabean futures at the Chicago Board of Trade turned range-bound by midmorning Tuesday, after setting back from Monday's rally and easing concerns about hot and dry weather forecasts for the Midwest, traders said.
July soyabeans were up 1/2 cent at $6.00-1/2 per bushel, with the back months up 3/4 cent to down 3 cents. Large speculators were early sellers, with Rand Financial selling 300 July contracts and Citigroup selling 200 July and 200 November, traders said.
But speculators hold a net short position in CBOT soyabean futures which underpins prices, especially at the start of the growing season when volatility is high due to the vulnerability of the crop.
The soyabean market closed about 10 to 14 cents higher Monday as traders added in weather premium to prices amid extended forecasts calling for hot and dry weather to blanket the Midwest crop belt.
But Tuesday forecasts were a touch wetter for early next week as a high-pressure ridge centred over Texas was expected to move eastward, which could mean a little more moisture for the Midwest crop belt, a private forecaster said.
The US Agriculture Department late Monday said 67 percent of the US soyabean crop was rated in good to excellent condition, down from 70 percent the previous week but ahead of last year when 64 percent of soya was rated good to excellent. Traders expected conditions to be unchanged to 2 points lower. A drop of $1.50-plus per barrel in New York crude oil was pressuring soyaoil, which was 0.13 to 0.22 cent per lb weaker. July soyaoil was down 0.13 at 25.17.
Soyameal was slightly firmer, gaining on soyameal, but prices kept within recent ranges. July soyameal was up 30 cents at $181.50 per ton, with the back months up 50 cents to down 50 cents. Midwest spot river bids for soyabeans were weaker and steady at interior locations, with sales quiet early Tuesday, dealers said.