CBOT Soy Review on Thursday: Down on speculative sales as dollar strengthens

 

 

Soybean futures at the Chicago Board of Trade ended lower Thursday, backpedaling from early gains, as speculative sellers emerged after the U.S. dollar strengthened.

 

CBOT March soybeans ended 3 1/2 cents, or 0.37%, lower at US$9.48, and May soybeans settled 3 1/2 cents, or 0.36%, lower at US$9.57 1/2.

 

Speculative funds were estimated sellers of 5,000 lots in soybeans, 1,000 lots in soymeal, and 1,000 lots in soyoil.

 

The absence of fresh fundamental news kept outside market influences in play, with bearish production outlooks for South American crops applying underlying pressure, analysts said.

 

Ample U.S. supplies and growing world inventory outlooks as the South American soybean harvest moves forward served as the longer term bearish feature for prices.

 

However, a quiet news front kept attention on movement in the U.S. dollar, with speculative funds taking a defensive stance in an effort to avert risk on the thought of the rising greenback making U.S. supplies more expensive in world markets, a CBOT floor analyst said.

 

Meanwhile, declines were limited by strength in crude oil futures. Otherwise, activity remains subdued, with prices remaining in a consolidative trend, with end user buying and a firm cash basis underpinning prices while ample world supplies and hedge pressure limit advances.

 

The U.S. Department of Agriculture's weekly export sales report, normally issued on Thursday, will be released Friday at 8:30 a.m. EST due to Monday's Presidents Day holiday. Analysts surveyed by Dow Jones Newswires estimate soybean sales for the week ended Feb. 11 to be in the range of 250,000 to 500,000 metric tonnes. Soymeal export sales are seen between 75,000 and 150,000 tonnes, while soyoil sales are pegged between 10,000 and 20,000 tonnes.

 

 

Soy produsts  

 

Soy product futures ended lower, succumbing to spillover pressure from soybeans. However, despite the lower theme, soyoil futures managed to grab product share on spreads, as borrowed strength from sharp gains in crude oil futures underpinned prices. Soymeal futures were a downside leader in the complex, pressured by oil/meal spreading and technical selling after futures failed to attract buying once Wednesday's session highs were challenged, analysts said.

 

March soymeal settled US$3.80, or 1.36%, lower at US$275.60, and the May contract dropped US$4.00, or 1.46%, to US$270.20 per short tonne. March soyoil dropped 5 points, or 0.13%, to 38.70 cents per pound, while the May contract settled 5 points, or 0.13%, lower at 39.18.

 

May oil share was 42.07% while the May soybean crush ended at 68 cents.