Chicago Board of Trade soyabeans ended sharply lower to down the daily 50-cent trading limit on Friday on heavy speculative sales, nearly ideal US crop weather and a slight cutback in domestic crush, brokers said.
"It's a case of irrational exuberance to the downside," said Vic Lespinasse, AG Edwards floor trader.
"There are no early rumours behind the losses. Funds and locals began selling and we hit (sell) stops."
"From what I hear off the floor, the lion's share of the selling seems to be investment fund liquidation," agreed Dale Gustafson, analyst at Citigroup.
The three May CBOT soya futures contracts expired at midday.
CBOT soyabeans settled down 10 to 50 cents per bushel, with May expiring down 44 cents at $9.69 and July down 50 cents at $9.32-1/2 per bushel, with 1,200 unfilled sell orders left. Soyabean options trade indicated a July soyabean bid at $9.27 and offer at $9.29 on Friday's close.
Commodity funds sold at least 12,000 lots, while commercials were light net buyers, brokers said.
CBOT soyaoil ended down 1.03 cents to up 0.10 cent, with July down 1.03 cents at 30.10 cents.
May expired down 0.97 cent at 30.68 cents. Commodity funds sold at least 2,500 lots and commercials were light net buyers, brokers said.
CBOT soyameal settled down $4.20 to $17.70 per ton, with July down $17.20 at $298.80 per ton. May expired down $17.70 per ton at $306.80.
Commodity funds sold about 7,000 lots and commercials were light net buyers, brokers said.
Cash US soyameal basis offers were steady on Friday.
The losses followed Wednesday's sharp break when CBOT May soyabeans ended down 62 cents and July closed down the daily trading limit.
Speculative commodity funds liquidated long positions on Wednesday and talk circulated of US imports of South American soyameal, brokers said.
The USDA has forecast record US soyameal and soyaoil imports this summer to alleviate a shortage in US soya stocks.
Nearly ideal US crop growing weather also weighed on the market on Friday, brokers said.
Citigroup's Gustafson projected that the US Agriculture Department on Monday will report that about 50 percent of the US soyabean crop has been planted.
"Overall, there are continued very favourable conditions for plantings, emergence and development of corn and beans through next week," said Meteorlogix forecaster Mike Palmerino.
And Friday's NOPA crush report also showed a much-needed letup in crush, brokers said.
A strong domestic crush pace has underpinned US soya prices.
The National Oilseed Processors Association reported its members' April soyabean crush at only 105.373 million bushels, below trade estimates for 108 million to 110 million.
NOPA's April meal exports totalled 121,880 tons, down from 245,887 in March and down from 356,472 in April 2003.
NOPA April soyaoil stocks fell to 1.214 billion lbs, down from 1.392 billion in March and 1.692 billion a year ago.
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