Soyabean futures at the Chicago Board of Trade closed lower on Thursday with the market pressed by potential rainfall next week in the dry eastern US Midwest, traders said. CBOT soya closed unchanged to 4-1/4 cents per bushel lower. July was down 4-1/4 at $6.92 per bushel. New-crop November was down 2 at $7.07-1/2.
The market was volatile and soya closed above the day's lows with prices shifting on both sides of Wednesday's settlement levels because of the uncertainty about weather forecasts.
"At this point the market has come to the realisation that the overall weather pattern has not made a significant change so there's more logic in the market right now than you might think sometimes," said Jerry Girdle, analyst for North America Risk Management Inc.
Some selling also may have evolved after bomb blasts in London's transport system unnerved the financial and other markets, the traders said.
However, CBOT soya traders said most of the pressure on soya stemmed from the possibility of showers next week in the dry eastern Midwest crop region, especially in top producer Illinois.
There is the potential for rains next week in the dry areas of the eastern Midwest after Hurricane Dennis reaches landfall, a private forecaster said on Thursday.
"There is the possibility of showers in the eastern Midwest late on Monday or Tuesday but there is a lot of uncertainty in this forecast," said Meteorlogix forecaster Joel Burgio.
Burgio said it would remain dry in the eastern crop region through the weekend and after next week another dry spell was likely. Recent volatility in the soya complex caused the CBOT to raise the initial margin to trade soya from $1,823 to $2,295 effective with the close of business on Thursday.
Exports were quiet overnight and a delivery on the July contract was heavy at 898 lots and there was scattered stopping of the soya. Registrations with the CBOT increased to 1,634 lots from the previous 1,202. There was floor talk on Thursday that China may have bought a cargo of soya from South America.
Cash basis bids for soya in the Midwest on Thursday were firm amid an almost complete halt in farmer selling, cash dealers said. Soyameal closed 40 cents to $4.10 per ton lower.
July was down $1.60 at $214.60 per ton. The CBOT raised the initial margin to trade soyameal from $1,114 to $1,485 effective with the close of business on Thursday.
There were no deliveries on the July contract on Thursday and registrations with the CBOT unchanged at 170 lots. The export hopper included news from traders in New Delhi that Vietnam and Thailand have bought 18,000 tonnes of soyameal from India.
Soyaoil futures closed 0.10 to 0.65 cent per lb. higher on fund buying. July was up 0.15 at 25.15 cents per lb. The CBOT raised the initial margin to trade soyaoil from $979 to $1,080 effective with the close of business on July 7.
There were no deliveries on the July contract on Thursday and registrations with the CBOT unchanged at 1,092 lots. Malaysian palm oil futures closed lower overnight.
Traders in Kuala Lumpur said palm dropped amid losses in rival US soyaoil and on selling ahead of official crop and export data next week.
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