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CBOT soya ends lower on US weather, stocks sell-off

CHICAGO: Soyabean futures at the Chicago Board of Trade ended lower on Friday amid pressure from forecasts for weekend rains in the U.S. Midwest and a precipitous fall in the U.S. stock market.

CBOT soyabeans settled 4-1/2 to 6-1/4 cents lower, with May off 5-3/4 cents at $5.32-1/2.

Futures started the session 4 to 4-1/4 cents higher, lifted by long-term forecasts from the National Weather Service for below-normal precipitation and above-normal temperatures.

Traders had called the market to open by as much as 10 cents higher following gains of 5-3/4 to 9-1/4 cents on the CBOT's Project A overnight screen trading system.

But the CBOT rally was short-lived as forecasts for increased rain the Midwest over the weekend and next week dampened sentiment. The market was also pressured by a steep in the Dow Jones Index amid fears of further interest rate hikes.

"It was a combination of the short-term weather forecasts and the Dow," a trader said, adding that one forecast had up to 2 inches of rain in the Midwest over the weekend.

He said players had also positioned themselves on Project A overnight after the NWS outlook was issued late on Thursday. "If the rains over the weekend are less than expected, we can expect another weather rally on Monday," the trader said.-Reuters