January 7, 2006

 

CBOT Soy Review on Friday: Weak on spec sales, argentina weather

 

 

Soybean and soy product futures on the Chicago Board of Trade settled lower Friday in a continued retreat from Wednesday's 4-month high as fund buying failed to emerge and 6- to 10-day weather forecasts pointed to rain in key Argentine soy growing fields, brokers said.

 

Midday spot U.S. Gulf soybean basis bids eased 1 cent while weekly U.S. soybean export sales of 461,500 metric tonnes were in-line with estimates and had little impact on trade, sources said.

 

CBOT March soybeans settled 7 1/2 cents lower at US$6.11 a bushel, just below its 20-day moving average of US$6.11 1/4 and well below Wednesday's 4-month high of US$6.33.

 

CBOT March soymeal settled US$2.60 lower at US$188.70 a short tonne and March soyoil ended 22 points lower at 22.99 cents a pound.

 

In soybean trades, the Refco division of Man Financial sold 500 March while JP Morgan and Fimat each bought 400 March.

 

Soybean deliveries against the CBOT January soybean contract on Friday totaled 463 contracts. Major issuers included Banc of America Securities LLC, which issued 200 contracts and E.M. Combs & Son, a Division of Cunningham, which issued 137 contracts. O'Connor was the major stopper at 259.

 

South American soybean futures settled lower Friday, with the March contract down 7 cents at US$6.36 1/2 per bushel.

 

 

SOY PRODUCTS

 

Soyoil futures ended lower following soybeans, brokers noted.

 

Net weekly U.S. soyoil export sales totaled 600 metric tonnes, well below estimates of 4,000 to 9,000 metric tonnes.

 

Soyoil deliveries totaled 1,536. Stoppers included the Century Group, which stopped 434; Prudential which stopped 140; and LBS Limited Partnership, a division of Man Financial, which stopped 282 contracts.

 

In soyoil traders, funds were light net buyers. Bunge bought 1,000 March and sold 200 May, Cargill Inc. sold 500 March, R.J. O'Brien bought 400 March and Rand Financial and Tenco each bought 300 March, brokers said.

 

Soymeal futures also ended weaker Friday following losses in soybean futures and on disappointing weekly U.S. soymeal export sales, brokers said.

 

In soymeal trades, funds were light net sellers. Man Financial bought 300 March, Refco Inc. sold 200 March and Cargill Inc. sold 200 March.

 

Soymeal sales were 46,200 compared to estimates of 75,000 to 125,000 tonnes. Net sales of 46,200 tonnes were a marketing-year low and were 43% below the week earlier and 67% under the prior 4-week average.

 

Cash soymeal basis offers remained weak Friday, while there were no deliveries Friday against CBOT January soymeal after Thursday's delivery by Bunge of 240 lots.

 

March oil share climbed to 37.86%, and the March crush was at 57 cents.