March 1, 2008

 

CBOT Soy Review on Friday: Climbs, set new highs on soyoil led rally

 

 

Chicago Board of Trade soybean futures ended sharply higher Friday, soaring to record highs on spillover support from soyoil and strength in world markets.

 

March soybeans ended 23 1/2 cents higher at US$15.22, May soybeans settled 24 cents higher at US$15.36 1/2, July soybeans finished 22 1/4 cents higher at US$15.46 and November soybeans ended 2 cents higher at US$14.264. May soymeal settled US$1.50 higher at US$382.20 per short tonne. May soyoil finished 152 points higher at 68.82 cents per pound.

 

The market picked up where it left off overnight, finding its footing late in the day, as a surge to record highs in soyoil attracted speculative and commercial buying, fueling a late rally to all-time highs, analysts said.

 

Soyoil continues to drive the soy complex, with speculative funds building longs, and ongoing technical strength feeding the appetites of bullish traders, said Brian Hoops, president Midwest Market Solutions in Yanktonne, South Dakota.

 

Scattered old/new crop spreading was featured for most of the day, with traders saying the fundamentals were alive in the spread as tight old crop stocks and strong demand allowed nearbys to gain at the expense of deferred months, analysts added.

 

Soyoil was the feature again, but soybeans are standing on some bullish fundamentals, as the market still hasn't seen any rationing of demand despite record high price levels, Hoops added.

 

Looking ahead, traders look for upside movement to remain the path of least resistance in the short term, as there still is no strong technical warning signals that a market top is close at hand, analysts said.

 

In pit trades, buyers and sellers were scattered among various commission houses, with speculative funds estimated buyers of 6,000 lots.

 

 

SOY PRODUCTS

 

Soyoil futures ended higher, establishing new record highs once again. The market continues to garner strength from speculative and commercial buyers, as tight world edible oil supplies and strong global demand serve as catalysts for current run to historic highs, analysts said. The market was energized from the outset by record highs established in Asian vegoil markets. The lofty Asian prices generated thoughts of increased demand for U.S. soyoil, as traders continue to view U.S. prices as cheap in comparison to China and Malaysia, analysts added.

 

Soymeal futures ended higher, managing to stage a late recovery bounce on borrowed strength from the rest of the complex, traders said. Nevertheless, the surge in soyoil continued to gain product share from meal, traders added.

 

March oil share ended at 47.56% and the May crush ended at 61 1/4 cents.

 

In soymeal trades, buyers and sellers were scattered among various commission houses, with speculative funds estimated buyers of 2,000 lots.

 

In soyoil trades, buyers and sellers were scattered among various commission houses, with speculative funds estimated buyers of 6,000 lots.