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Soyabean futures at the Chicago Board of Trade fell on Wednesday on a technical setback from this week's fund-led short-covering rally, but came off lows late amid heavy call buying, traders said. ADM Investor Services bought 1,000 March $5.40 calls near the close. "That helped rally the market late," said one floor trader. A large open interest in March $5.40 call and put options, near 16,800 lots at Wednesday's open, continued to draw the underlying market toward that level before on Friday expiration, traders said.

March soyabeans closed 1/4 cent lower at $5.35 per bushel, while May settled 3/4 cent weaker at $5.34-3/4. The other months closed 1 cent down to 1-3/4 cent up. The session may fell below its 50-day moving average of $5.31-1/2, sliding 6-1/2 cents to $5.29.

Spread trade was active as firms rolled their March positions before February 28 first notice day. Citicorp was featured spreading about 1,500 July/March soya, traders said. Soyameal futures closed weaker, setting back from their recent climb when funds covered short positions.

But meal came off its lows late, following soyabeans. March meal settled 20 cents down at $162.90 per ton, with the deferred steady to $1.70 lower. The US soyameal cash market was steady to weaker.

The soyaoil market fell on lingering concerns about large US soyaoil stocks after the National Oilseed Processors Association reported on Tuesday a 25 percent jump in stocks during January.

The drop in soyabeans also weighed on prices. March soyaoil settled 0.06 cent lower at 19.56 cents per lb., while the back months were 0.03 to 0.12 cent lower. Malaysian palm oil futures closed mostly weak overnight.

Traders in Kuala Lumpur said renewed concerns about dwindling crop prospects from February helped the market close with a firm undertone. Funds were net buyers of roughly 3,000 lots in soyameal.

Commercial Cargill Inc sold 500 March meal. In soyaoil, funds were close to even. Firms were rolling March oil and meal positions. Clayton spread 1,500 March/May soyaoil.

Copyright Reuters, 2005


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