20000312CBOT soyabeans end lower on fund selling, weather

CHICAGO: Chicago Board of Trade soyabean futures closed lower Friday on fund selling tied to overall good crop weather in the US Midwest and in South America, traders said.

Soyabeans closed 6-3/4 to 9-1/2 cents lower with March down 7 at $5.00. May was 6-3/4 lower at $5.09-3/4.

"We had some talk about a wetter pattern again in the Plains and in the Midwest," said Mark Cermak, president of futures for O'Connor and Co. "Also the market went home long yesterday, maybe too long going into the report which, by the way, came out about as expected."

The US Department of Agriculture early Friday released its March US and World supply/demand reports. Weather Services Corp. said Friday there was a chance for a few rain and snow showers in the US Midwest on Sunday, redeveloping again Monday afternoon and extending west to east. Fair weather was expected Tuesday in much of the Midwest.

Midwest temperatures will be near to below normal Sunday, near to above normal Monday and above normal Tuesday, WSC said.

Weather in South America has been crop friendly recently and there are no signs of significant weather problems developing there.

"It looks like a drier pattern developing in the Southern Hemisphere which will allow harvesting there," Cermak said.

Soyabeans opened with quiet gains Friday after the USDA increased its export estimate for US soyabeans and reduced its ending stocks outlook.

USDA estimated US soyabean exports at 910 million bushels versus 890 million in February. The ending stocks estimate was cut to 325 million from 345 million.

Some traders said it was mildly bullish that USDA left Brazil's crop estimate unchanged at 30.50 million tonnes. However, they noted USDA increased Argentina's soyabean estimate to 20 million tonnes from 19.50 million in February.

Analysts on a CBOT panel following release of the USDA data also said they expect South America's soyabean crop numbers to increase in subsequent USDA supply/demand and crop reports as the harvest progresses.

Funds sold 5,000 lots Friday led by Prudential Securities sale of 1,200 May and 700 July, traders said. Refco Inc. sold 1,000 May, Rand Financial sold 1,000 May and Carr Futures sold 1,200 May, traders said. Commercials also were on the sell side to the tune of 1,000 lots.

Soyabean futures volume was estimated by the CBOT at 57,000 lots, above the 42,522 lots traded Thursday.

Soyabean options volume was estimated at 18,000 lots.-Reuters