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CBOT soya products end lower, weather batters beans

CHICAGO: Chicago Board of Trade soya products futures ended sharply lower on Monday as soyabeans tumbled to the tune of the weather in the U.S. Midwest.

CBOT soyameal settled $3.00 to $4.40 per ton lower, with May off $4.10 at $167.70.

Soyaoil was 0.31 to 0.57 cent per lb lower, with May off 0.39 at 17.46 cents.

"The market was a captive of the weather," said Vic Lespinasse, floor commentator for AG Edwards & Co. at the CBOT. He said both products were taking their cue from soyabeans.

CBOT soyabeans closed sharply lower, almost erasing strong gains posted last Friday following forecast for below-normal rainfall and above-average temperatures in spring.

Players last week built a premium in soyabeans to reflect uncertainty over crop prospects following a U.S. government warning of a drought in the Midwest this spring.

An unseasonably warm and dry winter has depleted soil moisture in many areas of the Midwest, with timely rains needed to replenish fields ahead of and following spring plantings.

But heavier-than-expected weekend rainfall in the Midwest and forecast for more this week pummeled soyabeans Monday.

Weather Services Corp. meteorologist Joel Burgio said the Corn Belt benefited from weekend rain and that the region was expected to receive more moisture this week.

He said there was a chance of showers in the eastern Corn Belt Monday and Wednesday while Tuesday would be dry.

The extended outlook called for 0.25 inch to 0.75 inch of rain in the Midwest on Thursday and Friday.

Burgio said the central and southern Midwest received the heaviest rainfall with "some pretty decent rains in central Illinois and central Indiana, some of the big acreage country."

"There was snow and rain in the western Corn Belt of from 0.10 inch to 0.35 inch in the west and from 0.30 inch to 1.00 inch in the eastern Corn Belt," Burgio said.

Meanwhile, Memphis-based analytical firm Sparks Cos. forecast U.S. soyabean plantings this year at 74.89 million acres, trade sources said.

In 1999, U.S. farmers planted 73.8 million acres of soyabeans, according to the U.S. Department of Agriculture. The USDA 2000 plantings report is slated for release on March 31.

Malaysian palm oil, which competes with soyaoil in world markets, ended higher but off the day's highs on profit taking and technical selling, Malaysian traders said overnight.

In soyameal, O'Connor sold 1,500 contracts, ADM Investor Services sold 200 May, 100 July, 100 August, ABN Amro sold 300 August, 100 May. Rand Financial sold 200 May.

In soyaoil, ADM Investor Services sold 500 May, 100 July, 100 August, Central Soyaa sold 200 May, FIMAT Futures sold 700 May, 100 October, bought 200 May, Refco Inc. bought 800 May, Iowa Grain bought 100 July, 300 May, Carr Futures bought 300 July.

Soyameal futures volume was estimated by the CBOT at 18,000 lots, compared to 25,347 traded on Friday.

Soyaoil volume was estimated at 20,000 contracts, compared to 36,404 traded Friday.ÑReuters