CBOT Soy Review on Tuesday: Consolidates; lacked outside influence

 

 

Soybean futures at the Chicago Board of Trade ended higher Tuesday, consolidating off Monday's lows amid a lack of bearish outside market influences.

 

CBOT March soybeans settled 14 1/2 cents higher at US$8.63, and May soybeans ended 9 1/2 cents lower at US$8.53 1/2. November soybeans settled 1 3/4 cents lower at US$7.91 1/4.

 

May soymeal settled US$3.90 higher at US$264.70 a short tonne. May soyoil finished 8 points higher at 30.42 cents a pound.

 

The choppy tonnee in outside financial markets failed to influence price direction the way they did Monday, opening the door for short covering to buoy nearby contracts, said Tim Hannagan, analyst with Alaron in Chicago.

 

The market has reached a gray area, with little fresh fundamental news amid South American crop growth nearly done, leaving traders to eye macro market forces for direction.

 

However, without a definitive influence from outside markets, futures settled into a consolidative mode, Hannagan added.

 

Meanwhile, tight farmer holding of cash supplies and a lack of deliverable soymeal supplies provided strength for nearby contracts. Underlying support was generated from speculation that a rift between the Argentine government and farmers could result in a strike that could cripple Argentine grain movement and divert some demand back to the U.S., said Hannagan.

 

Nevertheless, new crop contracts slipped to new lows for the current downtrend, as outlooks for increased 2009 acreage and ending stocks weigh on the back end of the market, analysts said.

 

In other news, Argentina President Cristina Fernandez was a surprise participant in a meeting to negotiate agricultural policy with leaders of her nation's top four farm groups. The meeting kicked off at 1600 GMT with farmers and Production Minister Debora Giorgi.

 

Tensions are high amid government talk of creating a state entity to buy grains and beef and farmer threats of a new strike.

 

In pit trades, speculative fund buying was estimated at 4,000 lots.

 

 

SOY PRODUCTS

 

Soy product futures ended mostly higher, finding stability in the absence of bearish outside market influences. Soymeal futures gained product share on spreads, buoyed by tight nearby supplies amid a slow crushing pace, analysts said. Soyoil futures edged higher, managing to bounce off earlier lows on late upward movement in crude oil futures, traders said.

 

May oil share ended at 36.49%, down from Thursday's close of 36.79%. The May crush ended at 63 1/2 cents.

 

In pit trades, speculative fund selling was estimated at 1,000 lots in both soyoil and soymeal.