20000217

CBOT meal ends firm with soya, soyaoil keeps sinking

CHICAGO: Soya product futures at the Chicago Board of Trade ended on mixed Tuesday, as soyameal followed soyabeans higher amid talk of Chinese buying, while soyaoil sank to contract lows on sagging U.S. exports, traders said.

Soyameal settled $1 to $2.20 per ton higher, with March, the most-active contract, up $1.80 at $166.30.

Soyaoil settled 0.08 to 0.15 cent per lb lower, with March down 0.12 at 15.47 cents, the lowest close for a spot CBOT soyaoil contract since 15.44 on Jan. 3. March also set a contract low at 15.44. Funds sold at least 1,500 contracts on the day, traders said.

CBOT soyabeans ended 3 cents per bushel higher or better in nearby contracts, rebounding from early declines on talk that China was actively buying U.S. soyabeans. CBOT traders said trade talk had China buying anywhere from 300,000 to 600,000 tonnes of U.S. soyabeans over the past week.

The strength in soyabeans helped pull CBOT soyameal prices higher, traders said. On the cash side, U.S. meal values were mostly steady, with slow U.S. farmer soyabean selling continued to limit the amount of beans available for crushers.

Soyaoil continued to flounder in an environment of abundant vegetable oil supplies globally and slack demand from major importers, such as China. Last week, the U.S. Department of Agriculture said it reduced its 1999/2000 export projection for U.S. soyaoil to 1.65 billion lbs, a decline of more than 30 percent from 1998/99.

"Oil is just dragging on the poor export numbers," said Brian Scott, a trader with Chicago trading firm R.J. O'Brien & Associates.

Competing vegoil markets overseas were also weak. Malaysian palm oil futures sank to a 6-1/2-month low overnight, despite data reflecting increased exports this month. Cargo surveyor Societe Generale de Surveillance said it estimated Malaysian palm oil exports for Feb. 1-15 at 340,308 tonnes, compared with 278,252 in the first half of January.

But the data showed exports to major markets such as India and Pakistan had not increased substantially. Exports to India and Pakistan during the period stood at 80,924 and 25,500 tonnes, respectively, compared with 80,721 and 60,250 tonnes January 1-15.

CBOT soyabeans and meal sank initially Tuesday, partly on an improved crop outlook in South America in the wake of widespread rainfall over the past two weeks.

The rains brought some relief from dry conditions and largely eliminated fears of a significant soyabean production shortfall. But some areas, particularly southern Brazil, remained a source of concern due to a limited moisture outlook this week.

In the soyaoil pit, Merrill Lynch sold 600 March contracts and 200 May, R.J. O'Brien sold 400 May, Iowa Grain bought 500 May and Produce Grain bought 300 March and 100 May, traders said.

In meal, Cargill Inc. bought 400 May, Produce Grain bought 300 March, Term Commodities bought 200 May and 300 July and Refco Inc. bought 200 March and 300 May.

In spreading, FIMAT Futures Inc. bought 2,500 May meal and sold 2,500 March at a price difference of $2.90 to $3.10.

Soyameal volume during Tuesday's pit session was estimated by the CBOT at 30,000 contracts, compared to 15,079 Monday.

Soyaoil volume was estimated at 18,000 contracts, compared to 17,190 Monday.-Reuters