Soyabean futures at the Chicago Board of Trade closed weak on Friday as farmers harvested what could be a record large US soyabean crop, traders said. "There was light two-sided trade today in beans and little change. Forecasts for favourable harvest weather put a little pressure on the bean market," said Terry Reilly, analyst for Citicorp.
Pressure also stemmed from scattered profit-taking on a setback after the strong gains on Thursday that were triggered by fund buying, the traders said. CBOT soya closed 1-1/2 to 3-1/4 cents per bushel lower, with November down 1-1/2 at $5.64 per bushel. Meteorlogix weather on Friday said a more favourable period for harvest activity in the Midwest was expected over the next five days. After that, wet and cold weather may cause problems in the east and south.
Exports were quiet overnight yet traders remained on edge after the release on Thursday by USDA of a weekly export sales number for soya that was above trade expectations.
Traders also remain wary after the recent enormous price swings in the CBOT wheat futures market, which have influenced day-trade decisions and short-term price trends in soya.
Fund buying, likely short covering, boosted soya futures on Thursday in a big volume day. The CBOT on Friday said soya futures volume totalled 152,259 lots, which ranks in the top 10 volume days. The November contract at midweek moved above resistance at its 50-day moving average and that level, currently at $5.61 per bushel, is now viewed as important technical support.
Technical support in the November contract was at $5.54 per bushel and resistance was at $5.69-1/2. Soyameal closed $1.30 to $2.50 per ton lower, with October down $1.30 at $166.00 per ton. Soyaoil was up 0.09 to 0.18 cent per lb with October up 0.18 at 24.00 cents per lb.