The Chicago Board of Trade soyabeans market closed steady on Thursday, recovering from a weak open as it turned up when soyaoil rallied to contract highs in the nearby months, traders said. But soyabeans faded into the close as the market was overbought and due for a setback after the spot price reached a 2-1/2 year high Wednesday.
"The market is struggling to find the next bit of buying interest. So it will tend to grind lower," said Gavin Merger, analyst with Iowa Grain. July soyabeans closed unchanged at $7.92-3/4 per bushel. The back months through January 2008 also settled unchanged.
The soyabeans oil market ended 0.23 to 0.32 cent per lb. higher, with the nearby months making contract highs due to the strength in the crude oil market. July soyaoil closed 0.26 cent higher at 34.99 cents, after notching a contract high of 35.11 cents. "The bean oil has just been a fantastically strong market," Merger added.
US crude oil futures surged more than $2 per barrel, moving in tandem with gasoline futures on worries about limited gasoline supplies ahead of the summer driving season. Soyameal was the weakest of the complex, but came off its lows as soyabeans turned up. July Soyameal ended 50 cents lower at $212.70 per ton, with defenders down 60 cents to up 50 cents.
Volume was moderate to heavy in soyabeans and soyaoil and lighter in Soyameal. In soyabeans, an estimated 91,380 futures and 28,646 options traded. Soyaoil volume was pegged at 31,016 futures and 2,946 options.
Estimated Soyameal trade was 23,661 futures and 1,012 options. Commodity funds bought 2,000 soyabeans contracts, 2,000 soyaoil and sold 500 Soyameal, traders said. The soya market was pressured, setting back from Thursday's rally.
Commodity funds expanded their net long position in CBOT soyabeans futures this week amid rising demand for soyaoil to produce bodiless, worries about the rising value of the Brazilian real and smaller US soya plantings. Analytical firm Informal Economics released its latest US crop acreage estimates on Thursday. Informs pegged US soyabeans acres at 68.3 million.
While the forecast was above the US Agriculture Department's March estimate for 67.1 million acres, it is significantly below the 75.5 million planted in 2006.
Weekly export sales were within expectations, giving the market little direction. US Agriculture Department reported that 358,900 tonnes of soyabeans (222,900 tonnes old-crop) were sold for export last week.
That compared to trade estimates for 150,000 to 350,000 tonnes. USDA said 88,700 tonnes of US Soyameal (86,900 tonnes old-crop) were sold for export last week, within estimates for 50,000 to 125,000 tonnes.
US soyaoil sales last week were 3,500 tonnes (all old-crop), within estimates for zero to 5,000 tonnes. Spot Midwest basis bids for soyabeans were steady late on Thursday, underpinned by a lack of movement as farmers focus on planting, cash dealers said. Malaysian palm oil futures closed mostly higher.