Soyabean futures at the Chicago Board of Trade closed lower on Tuesday as speculators continued to take profits after on Monday's key technical reversal, traders said.
The nearbys were under the greatest pressure on Tuesday amid active bear spreading. Spread trade featured rolling of May longs to deferreds along with active spreading of new-crop/old-crop soyabeans.
Also, the CBOT increased its futures margins on soyabean and soyameal contracts effective on Tuesday night due to the markets' volatility and that chased some longs out of both markets, traders said.
Initial soyabean margins increased by 6.7 percent to $2,160 per contract and soyameal futures by 9 percent to $1,485.
By the close, the soya market through May 2005 was 16-1/2 to 2-1/2 cents lower. May soyabeans ended 15-1/2 lowers at $10.09, while November soya closed 3-1/2 down at $7.79.
Commodity funds net sold about 1,500 soya contracts and commercials were on both sides of the market.
The sell-off over the past two days was ignited by prospects that South American soyabeans and soya products will be moving into export channels now that Brazil's soya harvest was more than 50 percent complete, traders said.
On Monday, the market saw a key reversal hitting a contract high then dropping below on Friday's low.
But the new-crop months remain supported by cuts in this year's South American soyabean crop.
Dry weather in Argentina and southern Brazil and wet weather in northern Brazil trimmed soya output.
The US Department of Agriculture will issue updated estimates for Brazilian and Argentine soya production on Thursday in its April supply/demand report.
Soyameal futures ended $5 lower to $2 per ton higher, with May soyameal down $4.70 at $321.80 while December meal closed $1.20 higher at $241.00.
Speculative profit-taking after its recent climb to 30-year highs pressured the nearbys. Soyaoil futures settled mostly lower, down 0.42 cent to up 0.07 cent per lb, on a profit-taking setback.
May soyaoil closed 0.33 cent lower at 32.41 cents. Funds net sold about 4,500 soyaoil futures. Commercials were active on both sides of the market.
CBOT left soyaoil margins unchanged, despite raising soya and meal margins. Trade volume was large to moderate across the soya complex.
In soyabeans, an estimated 79,777 futures and 22,018 options traded. Soyameal trade was seen at 27,866 futures and 3,285 options. Soyaoil futures volume was pegged at 32,644 contracts and options at 2,810.