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  • Oct 29th, 2005
  • Comments Off on US MIDDAY: soyabeans dip on technical breakdown
Soyabean futures at the Chicago Board of Trade slipped early on Friday on a technical breakdown, with the November contract falling below a key support level at $5.66-1/2, traders said.

The move came before first notice day for November deliveries on Monday. Concerns about global feed demand amid the spread of bird flu remain bearish along with a lagging export pace for US soyabeans.

November soya was 6-1/2 cents per bushel lower at $5.64-1/2 by 11:40 am CDT (1640 GMT). January was 6-1/2 lower at $5.77. The $5.66-1/2 level in November soyabeans was key support, after the market dipped to that level on Monday - filling a chart gap leftover from the October 12 crop report.

Funds were selling soyabeans, traders said. Refco sold 1,000 January and UBS Warburg sold 500 January. There were no concerns about the final harvest of soyabeans as the weather should be mostly dry this weekend, said Meteorlogix weather service.

Midwest soyabean basis bids for soya firmed early Friday as harvest was slowing and processors tried to source enough beans to replace their crush.

The soya products were lower following soyabeans. December soyameal was $1.40 per ton weaker at $169.10, with the deferreds 10 cents to $1.40 lower. December soyaoil was 0.15 cent weaker at 23.23 per lb, with back months 0.10 to 0.20 cent down. Rand Financial sold 500-600 soyabean oil contracts.

CBOT soyameal retreated from Thursday's climb which was sparked by tighter-than-expected US soyameal stocks. South Korea's purchase of 110,000 tonnes of South American soyameal offered little support.

Copyright Reuters, 2005


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