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CBOT soyabeans end lower on US weather, funds sell

CHICAGO: Soyabean futures at the Chicago Board of Trade ended lower on Monday amid weekend rains in the US Midwest and forecasts for more this week.

CBOT soyabeans settled 4 to 7 cents per bushel lower, with May off 6-3/4 at $5.32.

The selling of 1,500 contracts by commodity funds and position squaring ahead of Tuesday's US Department of Agriculture supply/demand report also pressured futures.

The advancing harvest in Brazil added to the pressure. No rain was forecast the next 6 to 10 days for the centre-west region where more than half the crop has been harvested.

Traders said some forecasts for the US Midwest showed increased frequency for rain through the week. Rains were seen on Monday and Tuesday. The next system of note will be from late Friday through Saturday, producing 0.2 inch to 1.0 inch of rain with about 55 percent coverage.

Traders said the latest CFTC commitments reports also weighed on the market. The report issued on Friday showed as of April 4 noncommercials, including funds, were long 56,177 contracts and short 11,221.

"The market was essentially driven by the weather," one trader said. "There are some forecasts calling for wetter weather in the Midwest this week, especially Friday."

"We also saw light position squaring ahead of tomorrow's supply/demand report," he added.

Analysts expect the US soyabean carryout for 1999/2000 at 300 million to 315 million bushels, down from 325 million due to the brisk export pace, including sales to China. One said exports could be raised by 20 million bushels.

The soyabean crush may be lowered by 10 million bushels to 1.590 billion from the forecast for 1.6 billion.

The analysts were sceptical that the USDA would boost its forecast for South American soyabean production in this report.

Industry sources said last week Memphis-based analytical firm Sparks Cos. boosted its estimate for South American 1999/2000 soyabean production. It forecast production in Brazil at 31.0 million tonnes and in Argentina at 20.5 million.

USDA in March pegged Brazil output at 30.5 million and Argentina's at 20.0 million.

Weather Services Corp. meteorologist Joel Burgio said early on Monday the weekend rains will boost soil moisture as US farmers gear up for spring plantings of corn and soyabeans.

"Rain over the past 72-hour period was heaviest in southern Illinois, central Indiana and all of Ohio," he said.

WSC meanwhile said conditions are favourable for harvest of soyabeans in Brazil which continues over northern and central areas and is expected in southern areas as crops mature.

O'Connor sold 600 May, bought 100 May, FIMAT Futures sold 400 May, bought 100 July, Term Commodities bought 200 July and 200 May, and Lehman Brothers bought 200 May.

Soyabean futures volume was estimated by the CBOT at 38,000 contracts, compared with 50,954 traded on Friday.

Soyabean options volume was estimated at 12,000 lots. -Reuters