March 16, 2006

 

CBOT Soy Review on Wednesday: Weak on technicals,US planting conditions

 

 

CBOT soybeans and soy product futures ended lower Wednesday after early commercial and speculative buying eased, allowing the focus to return to bearish fundamental inputs, including improved U.S. Midwest soil conditions ahead of plantings and a building harvest of a projected record South American soybean crop, brokers said.

 

CBOT May soybeans settled down 3 1/2 cents at US$5.84 1/4 after key support held at last Friday's 6-week low of US$5.79.

 

The May soybean contract briefly topped resistance at the 10-day moving average of US$5.91 3/4, but then turned lower, sparking sales.

 

CBOT May soymeal ended Wednesday down US$1.10 at US$175.00 per tonne. CBOT May soyoil closed down 0.12 cent at 23.55 cents per pound.

 

In CBOT soybean futures pit trade, Bunge Grain bought 400 May, ABN Amro traded 500 May, Refco Inc. and Man Financial each sold 200 May, brokers said.

 

In Wednesday's soybean spread trade, Iowa Grain spread 300 July/May and FC Stonnee spread 300 November/July, they added.

 

Midday U.S. Gulf soy basis bids fell 1 cent while central Illinois soybean processor bids sagged 3 1/2 cents, cash sources said. Earlier in the day, CBOT traders and cash sources had noted a recent uptick in U.S. soybean basis amid a lack of U.S. farmer soy sales.

 

CBOT South American soybean futures ended mixed Wednesday. The CBOT SAS May futures settled down 1 cent at US$6.02 per bushel.

 

Thursday is the last day to deliver against CBOT March soy futures.

 

There were 276 deliveries posted Wednesday against expired CBOT March soybeans, with a customer of R.J. O'Brien stopping 174 lots, brokers noted.

 

CBOT soybean registrations as of late Tuesday fell to 3,718 from Tuesday's 3,785 lots.

 

There were 26 deliveries posted Wednesday against expired CBOT March soyoil, with a customer of Banc of America stopping 16 lots.

 

There were 24 CBOT soymeal deliveries posted Wednesday, with the house account for Bunge Grain stopping all 24 lots.

 

CBOT soyoil registrations as of late Tuesday totaled 6,458 contracts while soymeal registrations remained steady at 34 lots.

 

CBOT soy traders also await the weekly U.S. Department of Agriculture export sales data. Analysts estimated weekly U.S. soybean export sales to total 300,000 to 500,000 metric tonnes, soymeal sales at 50,000 to 125,000 tonnes and soyoil sales at zero to 10,000 tonnes.

 

 

SOY PRODUCTS

 

CBOT soymeal futures ended weak Wednesday, with the nearby five contracts down 70 cents to US$1.10 per tonne.

 

In CBOT soymeal trades, Bunge Grain bought 200 May and 500 July, O'Connor and Co. bought 300 July and Tenco Inc. bought 300 July and 100 May, brokers said.

 

Soyoil futures settled lower Wednesday, with the nearby five CBOT soyoil contracts down 0.11 cent to 0.12 cent per pound.

 

A lingering correction in the CBOT soyoil/soymeal spread and a weak close in Malaysian palm oil prices overnight, amid record supplies, weighed on soyoil, brokers said.

 

CBOT May oil share ended Wednesday at 40.22%, correcting from Monday's 40.48%, and the May crush was at 59 3/4 cents.

 

In Wednesday's CBOT soyoil trades, commercials were net buyers, with ADM buying a net 300 May and Bunge Grain buying 400 May, brokers said. Fimat bought 500 July and sold 500 May while R.J. O'Brien bought 1,200 May, they noted.