February 23, 2008

 

CBOT Soy Review on Friday: Sets new highs; soyoil, demand underpin

 

 

Chicago Board of Trade soybean futures ended higher Friday, rallying to all-time highs on bullish momentum from soyoil and strong underlying demand.

 

March soybeans ended 14 1/4 cents higher at US$14.20, May soybeans settled 13 1/2 cents higher at US$14.38 1/4, July soybeans finished 13 1/4 cents higher at US$14.52 3/4 and November soybeans ended 12 cents higher at US$13.90 1/2. May soymeal settled US$2.00 higher at US$368.20 per short tonne. May soyoil finished 90 points higher at 63.02 cents per pound.

 

Speculative buying continues to promote bullish enthusiasm, as buyers remain confident in the presence of stout export demand, with news of fresh buying from China and strength in world vegoil markets buoying prices, analysts said.

 

Light profit taking weighed on prices initially, but without any bearish influences prices quickly regained upside strength as long range bullish fundamentals keep sellers on the run, a CBOT floor trader said.

 

The market carved out new all-time highs once again, as traders remain fearful of being short the market as futures stay in a bullish uptrend, analysts said. Speculative-led buying and end-user demand are supportive influences on prices, with a rebound in crude oil futures and talk of a private acreage estimate from a prominent analytical firm coming in below the U.S. Department of Agriculture's forecast providing a spark to keep buyers enthused as well, analysts added.

 

In pit trades, buyers and sellers were scattered among various commission houses, with speculative funds estimated buyers of between 3,000 and 4,000 lots.

 

 

SOY PRODUCTS

 

Soy product futures ended higher, with soyoil soaring to new all-time highs once again. Soyoil futures are the upside leader of the soycomplex, as vegoil bull led rally keeps speculative buying a featured attraction, analysts said. Strong vegoils demand, with China actively filling its pipelines are promoting a bullish mentality that keeps speculative as well as commercial buying prevalent, particularly on any price break, analysts added.

 

Soymeal futures ended higher, feeding off the supportive tonnee in the rest of the complex. However, meal remains the weakest link in the complex, with soyoil continuing gain product share as oil/meal spreading limits upside potential in soymeal, analysts said.

 

March oil share ended at 46.31% and the March crush ended at 60 cents.

 

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

 

In soyoil trades, buyers and sellers were scattered among various commission houses, with Bunge Chicago buying 500 May, and Tenco buying 800 July. Speculative fund buying was estimated at 3,000 lots and commercial buying was estimated at 2,000 lots.