March 4, 2006

 

CBOT Soy Review on Friday: Up on pre-weekend speculative buying

 

 

Chicago Board of Trade soybeans ended higher on Friday on late pre-weekend speculative buying and commercial and fund-led gains in CBOT soyoil futures, brokers said.

 

CBOT soymeal futures settled weak on a setback from Thursday's speculative-led gains and lingering concerns about possible slowing global chicken consumption due to the spread of a deadly strain of bird flu, they noted.

 

Speculative commodity funds were thought to be net long about 8,800 CBOT soybean futures, net short about 5,600 CBOT soymeal futures and net long about 22,200 CBOT soyoil futures before Friday's opening bell.

 

CBOT May soybeans closed Friday up 2 cents at US$6.06 per bushel after resistance held at Thursday's high of US$6.07 1/2.

 

CBOT May soymeal closed down 70 cents at US$177.40 per tonne and CBOT May soyoil ended up 0.16 cent at 24.91 cents per pound after setting a 4 1/2-month high of 25.01 cents.

 

In Friday's soybean pit trades, Man Financial bought 800 May, UBS bought 300 May, commercial Bunge Grain bought 100 May, FC Stonnee sold 200 May and JP Morgan and Citigroup each sold 300 May, brokers said.

 

Spread trade was light, with Iowa Grain and O'Connor and Co. spreading 100 July/May, they said.

 

Midday U.S. soybean barge basis bids for the first half of March were up 1 cent per bushel Friday, cash sources said.

 

CBOT South American soybean futures ended mixed Friday. The CBOT SAS May futures settled down 2 cents at US$6.26 per bushel.

 

Soy traders continued to eye South American harvest and marketing news.

 

In Brazil, scattered rains were possible Sunday and Monday in Mato Grosso and Mato Grosso Do Sul, according to Meteorlogix weather service.

 

Brazilian soybean exports totaled 720,500 metric tonnes in February, compared to the 716,100 tonnes exported in January, according to preliminary figures issued by the Foreign Trade Ministry late Thursday.

 

Brazil's February soybean exports were 74% more than the same period last year, when Brazil sold 413,800 tonnes internationally.

 

In Argentina, mainly dry conditions were expected against key soy-growing regions through Monday, Meteorlogix said.

 

In Friday's CBOT soy delivery news, there were 1,125 deliveries posted on Friday against CBOT March soybeans, with R.J. O'Brien stopping 359 lots, brokers said.

 

Soybean contracts registered with the CBOT for delivery purposes as of Thursday afternoon were unchanged at 3,859 lots.

 

There were 310 deliveries posted Friday against CBOT March soyoil, with Term Commodities stopping all 310 lots. No soymeal deliveries were posted Friday.

 

There were 6,343 soyoil registrations, up from the previous day's 6,233, and 34 soymeal registrations, unchanged from Wednesday.

 

 

SOY PRODUCTS

 

CBOT soymeal futures ended lower Friday, with the nearby five contracts down 60 cents to US$1.10 per tonne.

 

In CBOT soymeal trades, funds were net sellers, brokers said. Goldenberg Hehmeyer sold 1,000 May while also buying 1,500 CBOT May soyoil. Rosenthal Collins sold 700 May and O'Connor and Co. bought 500 May, they noted.

 

CBOT May oil share ended Friday at 41.25%, and the May crush was at 58 1/4 cents.

 

Soyoil futures closed higher, with the nearby five CBOT soyoil contracts up 0.11 cent to 0.19 cent per pound.

 

Soyoil continued to benefit from fears of a cut in U.S. soybean crush amid the spread of bird flu and talk of increased U.S. biodiesel production, brokers said.

 

In Friday's CBOT soyoil trades, funds were light net buyers, brokers said. Besides Goldenberg Hehmeyer's oil/meal spreading, commercial Bunge Grain bought 1,500 May and sold 200 July; Citigroup sold a net 1,000 May and bought 200 July; and Tenco Inc. sold 900 May, they said.

 

In CBOT soyoil spread trade, Produce Grain spread 1,100 July/May, brokers noted.