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CBOT soya ends down on potential for S America rain

CHICAGO: Soyabean futures at the Chicago Board of Trade finished lower on Friday as caution over the potential for more rain in South America prompted traders to take profits after a week of sharp gains.

Soyabeans settled unchanged to 4-1/2 cents per bushel lower, with March down 3-1/2 cents at $5.23-1/2, after overnight rising as high as $5.29-1/2 for the contract's highest price since $5.36 on Sept. 13. For the week, March futures gained 18-1/4 cents.

Concerns over crop damage from persistent dryness in South America's soyabean belt remained a factor, as forecasts into next week were largely bereft of rainfall, traders said.

John Dee, agricultural meteorologist for Global Weather Monitoring, said in a South American outlook that dry weather should continue for four to five days..

"There are some signs that rains could push into sections of Argentina by early next week, but changes now indicate that they will be confined to the southern sections and not make their way into southern Brazil," Dee said in a report Friday.

But the possibility that surprise rains could develop over the weekend led to some profit-taking among funds, traders said. Some forecasters cited improved chances for rainfall in dry areas of South America at the end of next week.

Disappointment over the U.S. Department of Agriculture's latest weekly export data also contributed to declines, traders said. The USDA listed net U.S. soyabean sales during the week ended Jan. 20 at 166,700 tonnes, a marketing year low and 66 percent below the four-week average. Expectations ranged from 350,000 to 700,000 tonnes.

Commodity funds were light to moderate sellers in the soyabean pit Friday after buying actively for much of the week. Traders estimated that funds sold at least 800 soyabean contracts on the day.

Traders estimated that funds were holding a net long position in soyabean futures of 30,000 to 45,000 contracts by Friday.

Traders will look at the the next Commitments of Traders reports from the Commodity Futures Trading Commission, scheduled for later Friday, for indications on fund holdings. But the next reports will reflect positions only through Tuesday.

O'Connor & Co. sold 2,000 March contracts, ABN AMRO Inc. sold 400 July, ADM Investor Services bought 200 March and 500 July and FIMAT Futures Inc. bought 600 March and 500 May, floor sources said.

In options, Cargill Inc. bought 4,000 March $5.50 calls.

Soyabean futures volume during Friday's pit session was estimated by the CBOT at 46,000 contracts, compared with 85,868 Thursday.-Reuters