Chicago Board of Trade soyabean futures fell early on Friday, setting back from Thursday's rally with the weakness in corn weighing on soya prices, traders said.
January soyabeans were down 2 cents at $6.83-1/2 per bushel by 11 am CST (1700 GMT). The back months were 2 to 6 cents weaker - coming off their lows as corn recovered some from its early break.
The corn market was about 1 to 3 cents lower as traders took profits after making a 10-year high on Thursday. Corn is the leader among the Chicago agricultural markets as bullish outlooks for strong demand and attracted speculative capital into the markets.
Soyabeans follow the moves in corn, trying to prevent further acreage losses next spring. The soya/corn price relationship is encouraging farmers to plant a lot more corn next spring.
Generally favourable weather in South America was bearish. Heavy rains hit Brazil's recently planted soya belt, pushing moisture levels above monthly averages and favouring the start of the 2006/07 crop, meteorologists Somar said. Midwest basis bids for soya were steady, with sales slow especially in the eastern belt, which was getting hit with its first major snowstorm of the year.
The products were lower. Soyameal was pressured by the weakness in soyabeans and soyaoil was setting back from its rally to contract highs on Thursday. That rally came amid heavy volume as CBOT soyaoil futures volume hit an all-time high of 87,147 contracts on Thursday.
December soyameal was $1.50 per ton weaker at $191.90 per ton, with the deferreds 70 cents to $1.20 lower. December soyaoil was down 0.07 at 29.11 cents. The back months were steady to 0.25 down. Heavy December deliveries against soyameal and soyaoil on Friday pressured both markets.
There were 1,108 December deliveries amid strong stopping. Customers of Man's USA Division issued 305 lots and stopped 320, while an RJ O'Brien customer stopped 422.
Deliveries on the December contract were very heavy at 3,457 lots. The Bunge house account put out 777 lots after stopping the same amount the previous day, and an LBS customer issued 644. There were signs of commercial stopping, with the Term Commodities house account taking 776.