March 13, 2009

 

CBOT Soy Review on Thursday: Climb; consolidates on exports, outsides

 

 

Chicago Board of Trade soy futures rallied Thursday, finishing at session highs on a consolidative bounce from Wednesday's speculative-led declines.

 

CBOT March soybeans settled 24 cents higher at US$8.99, and May soybeans ended 20 cents higher at US$8.82. November soybeans settled 24 1/2 cents higher at US$8.41 1/2.

 

May soy meal settled US$7.00 higher at US$276.50 per short tonne. May soyoil finished 47 points higher at 30.38 cents per pound.

 

Soybean futures charged higher, with speculative buying and short-covering energized by bullish fundamental and economic influences, analysts said.

 

Strength in the U.S. stock market, firm crude oil and gold futures provided a bullish spark to temper the economic woes that have plagued the market, traders said.

 

Higher-than-expected weekly export sales served as a fundamental feature helping lead prices higher. "The strong export sales data was evidence of continued near term demand, with old crop balance sheet tightens as U.S. farmers remain firm holders of old crop inventories," a CBOT floor analyst said.

 

A firmer U.S. dollar applied mild pressure to limit advances, but late strength in the stock market opened the door for a late push to session highs down the stretch.

 

Otherwise, activity was subdued with adjustments in spreads a feature ahead of Friday's last trading day for the March contract.

 

The U.S. Department of Agriculture reported total weekly soybean export sales were a net 838,000 metric tonnes for the week ended March 5. Sales for 2008-09 were a net 837,000 metric tonnes. Analysts had forecast sales between 200,000 and 500,000 metric tonnes. Soymeal sales were a net 147,400 tonnes. Trade estimates ranged from 75,000 to 125,000 tonnes. Soyoil commitments were 24,800 metric tonnes. Analysts had forecast sales between 5,000 and 10,000 tonnes.

 

In other news, Brazil's estimate for the new 2008-09 soy crop was lowered to 57.7 million metric tonnes Thursday by the Brazilian Vegetable Oils Industry Association, or Abiove. Abiove cut its forecast from 58.1 million tonnes in its previous estimate on Feb. 10.

 

 

SOY PRODUCTS

 

Soy product futures ended higher propelled by bullish outside market influences and supportive export sales data. Soyoil futures rose on consolidative buying, recovering from Wednesday's setback, with spillover support from crude oil, strong export sales and absence of pressure from the stock market attracting buyers, analysts said.

 

Soymeal futures rose in unison with the rest of the complex, with strong weekly export sales, tight nearby supplies and supportive outside markets buoying prices, analysts said.

 

May oil share ended at 35.46%. The May crush ended at 60 1/2 cents.