Soyabean futures on the Chicago Board of Trade closed lower on Monday, with talk of an improved weather forecast for Argentina and the absence of expected fund buying sinking prices from the opening, traders said. More rain is forecast for Argentina, a world's No 3 soyabean producer, and temperatures are expected to moderate. Hot and dry conditions in Argentina fuelled a rally that lasted for most of December.
Volume was estimated near 146,000 contracts, roughly 13 percent below the previous 30-day average, thinned by spillover from the New Year holiday weekend. Brazil's soya-growing regions will see fairly steady, widespread rain over the near term, forecaster Somar said. Much of the crop has entered the late stages of its development.
The data showed all areas it monitors received ample rain in the last three days with the exception of the north of Rio Grande do Sul and Brazil's No 2 soya state Parana. However, Commodity Weather Group meteorologist Joel Widenor said the forecast for Argentina is trending drier for the next 10 days. Expected fund buying failed to materialise in the soyabean complex. Instead, funds were net sellers of soyabeans, soyameal and soyaoil. Traders said an estimate 6,000 soyabean futures were sold, as well as 3,000 soyameal contracts and 4,000 soyaoil.
In the CFTC's supplemental report released Monday afternoon, funds expanded their net longs to 155,949 soyabean futures contracts, up about 8,300 from the previous week. January soyabeans ended down 23-1/2 cents at $13.70-1/4 per bushel; most-active March was down 24 at $13.79, new-crop November down 14-1/4 at $12.94-1/4. March soyameal down $4.90 at $369.00 per ton. March soyaoil down 0.67 cent at 57.70 cents per lb.