February 21, 2008

 

CBOT Soy Review on Wednesday: Mixed; nearbys consolidate; new crop climbs

 

 

Chicago Board of Trade soybean futures ended mixed Wednesday, with nearby contracts consolidating after Tuesday's run to new all-time highs while new crop futures continued to rise on bullish acreage outlooks.

 

March soybeans ended 3/4 cent lower at US$13.97 3/4, May soybeans settled 3/4 cent lower at US$14.17, July soybeans finished 3/4 cent higher at US$14.30 3/4 and November soybeans ended 5 1/2 cents higher at US$13.66. March soymeal settled US$1.30 lower at US$360.40 per short tonne. May soyoil finished 50 points higher at 60.47 cents per pound.

 

A quiet news front promoted a consolidative theme, with traders looking to book some profits after prices climbed to historic levels Tuesday, analysts said.

 

However, anticipation of a tighter 2008-09 balance sheet to emerge from the U.S. Department of Agriculture's Outlook Forum, and the need to secure additional U.S. soybean acres in 2008 served as bullish influences to keep new crop contracts underpinned, with the November future rising to a new contract high, analysts added.

 

New/old crop spreading aided the mixed tonnee throughout the day, traders said. Nearby contracts managed to hover around unchanged levels after midday, with spillover support from a bounce in soyoil, and a recovery in crude oil and metal futures providing broad base strength to keep sellers taking a cautious approach to the market, a CBOT floor broker said.

 

Looking ahead, the market will keep a close eye on the USDA's outlook projections, with bullish longer range fundamentals expected to limit downside potential, analysts added.

 

In pit trades, buyers and sellers were scattered among various commission houses.

 

 

SOY PRODUCTS

 

Soy product futures ended mixed, with soyoil futures continuing to push higher on strong fundamental outlooks, analysts said. Soyoil futures carved out new all-time highs in late dealings, bouncing on speculative buying as tight world vegoils supplies and solid world demand remain supportive features to keep buyers enthused, analysts said. Outlooks for the USDA to project a tighter U.S. soyoil balance sheet from next year amid favorable outlooks for biofuels and a bounce to record high crude oil futures provide a bullish script for speculative buyers, analysts added.

 

Soymeal futures ended lower, backpedaling from earlier gains. The market succumbed to the late rally in soyoil, as oil/meal spreading increased soyoil product share, analysts said.

 

March oil share ended at 45.71% and the March crush ended at 62 1/2 cents.

 

In soymeal trades, buyers and sellers were scattered among various commission houses, with speculative fund selling estimated at 1,000 lots.

 

In soyoil trades, JP Morgan bought 500 March and 300 May, Newedge USA bought 400 May. ADM Investor Services sold 300 March, JP Morgan sold 500 March, and Newedge USA sold 400 March and 300 May. Speculative fund buying was estimated at 1,000 lots.