US soyabean futures on the Chicago Board of Trade slid to a two-month low on Friday, following the weakness in the equities given deepening worries about the fate of economy, traders said. The Dow industrials fell to a 6-1/2 year low on fears the government may be forced to nationalise some big banks even as the White House said it supports privately held banks.
Dow closed 100 points lower at 7,365. Softening Brazilian basis on harvest pressure coupled with talk that China may have cancelled 4-6 cargoes of US soya, rolling them to Brazil was also bearish. Beneficial rains for Argentine soya in February and forecast for more remain bearish for soya. March soyabeans ended 22 cents lower at $8.62-1/2 a bushel. Deferreds ended 10 to 22-3/4 down.
March soyameal closed $6.50 per ton lower at $270; March soyaoil ended 0.20 cent per lb down at 30.22 cents. Friday was last trading day and expiration for March options. Traders eyed the $8.80 and $9 strikes as potential price magnet given the open interest remaining at those levels. But March settled off those strikes, which should limit the chance of exercise risk over the weekend. Funds sold 3,000 soyabean contracts, 3,000 soyameal and 1,000 soyaoil.
Volume was large. Estimated soyabean trade was 174,460 futures and 44,004 options. Soyameal volume was pegged at 63,595 futures and 4,921 options. Estimated soyaoil volume was 73,127 futures and 4,425 options. Market fell despite strong weekly export sales data. USDA said export sales of soya last week 1,180,200, tonnes (1,094,200 tonnes old-crop), above estimates for 700,000 to 850,000 tonnes.
USDA said export sales of soyameal last week 142,800, tonnes (142,600 tonnes old-crop), below estimates for 150,000 to 200,000 tonnes. USDA said export sales of soyaoil last week 46,100, tonnes (old-crop), above estimates for 15,000 to 25,000 tonnes. Argentine soya belt to get hard rains Fri-Sun. Argentine farmers call anti-government strike.