January 29, 2008

 

CBOT Soy Review on Monday: Ends mixed; spillover supports nearby months

 

 

Chicago Board of Trade soybean futures settled mixed in choppy trading Monday, recovering from early losses.

 

March soybeans ended 10 3/4 cents higher at US$12.53 3/4, July soybeans finished 11 3/4 cents higher at US$12.87 and November soybeans ended 3 1/4 cents lower at US$12.28 3/4. March soymeal settled US$1.60 higher at US$336.60 per short tonne. March soyoil finished 54 points higher at 52.55 cents per pound.

 

Soybeans traded lower at the opening, coming under pressure from light speculative selling and concerns of a U.S. equity market sell-off, said Bill Nelson, associate vice president at AG Edwards & Sons in St. Louis.

 

The Asian markets sold off overnight and there were worries that the U.S. markets would follow, Nelson said.

 

Nearby months staged a recovery after the opening, bolstered by the rally in precious metals, with gold at record prices and a rebound from steep losses in crude oil, Nelson said. February gold settled US$17.10 higher at US$927.10 per ounce.

 

In addition, sharp gains posted in wheat futures also provided support with light bull market spreading adding to the gains in the nearby months, a trader said.

 

March wheat futures at all three U.S. wheat futures exchanges settled 30 cents higher, with MGE March spring wheat making another new all-time high at US$12.97 per bushel.

 

Favorable growing weather in South America over the weekend and forecasts for good weather over the next several days limited the upside in the nearby months, the trader said.

 

Deferred months ended lower on profit-taking after recent strong gains, but trimmed most of their losses before the close on spillover, an analyst said.

 

Export inspections had little market impact, the analyst said. The U.S. Department of Agriculture reported 27.669 million bushels were inspected for export, within the range of analyst estimates of 25 million to 31 million bushels.

 

In pit trades, commodity funds were net even on the day. Fortis was noted selling 500 November.

 

 

SOY PRODUCTS

 

Soy product futures rebounded from losses set earlier in the session on a rally in nearby soybeans and crude oil to finish higher, a commission house analyst said.

 

Soymeal futures were on the defensive for much of the session but rallied to end mixed as the nearby months were supported by the late gains in soybeans, the analyst said.

 

A recovery from steep losses to higher levels in crude oil helped provide a floor for soyoil futures with light speculative buying adding to the gains, the analyst added.

 

In soymeal trades, JP Morgan sold 300 March. In soyoil trades, RJ O'Brien sold 200 March.