Chicago Board of Trade soybean futures ended lower Friday, under pressure from a firm U.S. dollar and bearish South American crop outlooks.

 

CBOT March soybeans ended 3 cents or 0.32% lower at US$9.45, and May soybeans settled 3 cents or 0.31% lower at US$9.54 1/2.

 

Speculative funds were estimated sellers of 3,000 lots of soybeans, and 2,000 lots of soyoil. Fund buying was estimated at 1,000 lots in soymeal.

 

The strength of the U.S. dollar cast a negative shadow over the market from the outset, with the threat of increased world supplies and lackluster weekly export sales combining to weigh on prices, analysts said.

 

The spike in the U.S. dollar following the U.S. Federal Reserve's 0.25% raise in the discount rate Thursday set the bearish wheels in motion overnight. However, the inability of futures to attract follow-through selling, and the stabilization of outside commodity markets provided a boost to limit downside price pressure.

 

Continued underlying strong demand added support, with end users buying on price breaks, a possible sign that the market's near-term downside objectives have been met, said Bill Rafferty, analyst with Penson GHCO in New York.

 

Nevertheless, futures were unable to sustain its brief push into positive territory, as the longer-term outlook for higher world supplies heading into a record South American soybean crop harvest weighed on prices.

 

U.S. Department of Agriculture reported total weekly soybean export sales were a net 203,900 metric tonnes for the week ended Feb. 11, with 203,600 tonnes--a marketing-year low--sold for delivery in the 2009-10 marketing year.

 

 

Soy products

  

Soymeal futures finished mostly lower, succumbing to the bearish theme filtering through the complex amid strength in the U.S. dollar. However, meal served as the strongest link in the products, as strong weekly export sales provided support to generate oil/meal spread unwinding, analysts said.

 

Soyoil futures ended lower, pressured by speculative sales associated with the bearish impact of the U.S. dollar. However, solid weekly export sales and spillover support from a bounce in crude oil futures from earlier losses provided strength to limit downside potential, analysts said.

 

March soymeal settled US$0.80 or 0.29% higher at US$276.40, and the May contract dropped US$0.20 or 0.07% to US$270.00 per short tonne. March soyoil dropped 18 points or 0.47% to 38.52 cents per pound, while the May contract settled 18 points or 0.46% lower at 39.00.

 

May oil share was 41.93% while the May soybean crush ended at 68 1/2 cents.

 

Soymeal 2009-10 weekly export sales were a net 242,400 tonnes. Trade estimates ranged from 75,000 to 150,000 tonnes. Soyoil commitments were 46,700 metric tonnes. Analysts had forecast sales between 10,000 and 20,000 tonnes.