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CBTO Soya priduct

futures weaken

CHICAGO: A slip from contract highs in wheat and profit taking pressured CBOT soya product futures to a lower close, traders said on Thursday.

Ideas that significant portions of the U.S. soft red winter wheat crop may be abandoned and those fields instead planted to soyabeans and corn, also weighed on the soy complex, they said.

The U.S. wheat crop has been harmed by a harsh winter and dry spring.

Products were boosted early by USDA's cut in its outlook for 1995-96 U.S. meal and oil ending stocks. Products also were boosted by limit gains in wheat and strong corn.

A new contract high was set early in the May soymeal contract of $255.50 per ton, up from the previous high of $254.20 set Wednesday.

Soyameal closed $0.70 to $1.50 per ton lower, with May down $0.70 at $249.40. Soyaoil was 0.24 to 0.38 cent per lb lower, with May down 0.24 at 26.43 cents. News USDA trimmed its outlook for U.S. wheat ending stocks and persistent dry weather in the U.S. winter wheat region with little relief in sight, boosted CBOT wheat futures to a higher close and new contract highs were set, traders said.

"You can't have a 40-year-low carryout in wheat and about the same in corn and call it neutral, it's wildly bullish," said Paul Moravek, trader for LFG Futures.

USDA Thursday estimated the 1995-96 U.S. wheat carryover would tally 305 million bushels, down from its previous outlook for 346 million and below a year ago at 507 million.

Support also came from meteorologists statements Thursday that wheat fields in the western U.S. Great Plains may not get all the moisture they need this weekend.

Wheat surged the expanded 30-cent-per-bushel trading limit early and a new high of $5.79-3/4 per bushel was set in the May, up from $5.49-3/4 set Wednesday.

But profit taking trimmed the rally late. Traders said USDA Secretary Dan Glickman's statement that there would be no export embargo helped underpin futures near the close.

Wheat closed four to 16-1/2 cents per bushel higher, with May up 13-3/4 at $5.63-1/2. Record highs were notched for the seventh consecutive trading session but CBOT corn futures closed mostly lower on profit taking, traders said.

The new high for a CBOT corn contract is now $4.55-1/4 a bushel set Thursday in the May, up from $4.46-1/2 set Wednesday.

Nearby months held firm on another cut by USDA in its estimate for 1995-96 U.S. ending corn stocks, they said.

"Talk about tearing up soft red winter wheat hit the December and the stocks number encouraged buying old crop and selling new crop," said Vic Lespinasse of Dean Witter.

Harsh weather has harmed a large portion of the U.S. winter wheat crop leading to ideas for acres to be planted to feed grains.

USDA Thursday pegged 1995-96 U.S. corn ending stocks at 367 million bushels, down from 412 million estimated in March and sharply below the 1.558 billion bushels last year.-Reuter