March 22, 2006

 

CBOT Soy Review on Tuesday: Firm on specs,US cash,brazil tour forecast

 

 

Chicago Board of Trade soybeans ended firmer Tuesday. Brokers said a modest speculative-led correction from Monday's 3 1/2-month low in nearby May, firm U.S. interior and CIF soybean cash basis bids after a western Corn Belt snowstorm and crop tour reports of a lower-than-expected yield in Brazil's No. 2 soy growing state led advances.

 

Gains were limited by ample U.S. soy supplies, the building harvest of a hefty South American soybean crop and improved U.S. planting prospects, brokers said.

 

CBOT May soybeans ended Tuesday up 2 3/4 cents at US$5.75 1/4 a bushel.

 

CBOT May soymeal settled up 80 cents at US$174.10 per tonne. CBOT May soyoil ended down 0.08 cent at 22.83 cents per pound.

 

In CBOT soybean futures pit trade, Rand Financial bought 400 May; SA Inc. bought 300 May; FC Stonnee, Fimat Futures, Rosenthal Collins and UBS each bought 200 May; Calyon Financial sold 300 May; and R.J. O'Brien sold 200 May, brokers said.

 

Soybean growers and agronomists on a crop tour in Brazil said Monday they expect 2005-06 soy yields in northern Parana state, the No. 2 soy growing state, to total about 39 60-kilogram bags per hectare, less than the government estimate of about 44 bags per hectare.

 

Farmers met with agronomists and agribusiness leaders from Bunge, Dow Agro Science and others for a crop tour of northern Parana farms on Monday and Tuesday.

 

On Monday, the National Commodities Supply Corp., or Conab, of Brazil's Agriculture Ministry, said Parana was forecast to produce roughly 10 million metric tonnes of soybeans in the 2005-06 harvest, compared to 9.5 million tonnes in the 2004-05 harvest.

 

CBOT South American soybean futures also ended firmer Tuesday. The CBOT SAS May futures settled up 2 1/2 cents at US$5.96 per bushel.

 

In the U.S., midday spot Gulf soybean basis bids firmed 1 cent while interior bids were firm after a snowstorm in the western U.S. Corn Belt, cash sources said.

 

U.S. oilseed analysts estimated the U.S. Census Bureau would report early Thursday U.S. February soybean crush at 135.8 million bushels, down from the January crush tally of 151.5 million bushels.

 

Census February soyoil stocks were forecast at 2.724 billion pounds, up 247 million pounds from 2.477 billion pounds in January.

 

Census February soymeal stocks were expected to total 281,300 short tonnes versus the January tally of 324,402 short tonnes.

 

 

SOY PRODUCTS

 

CBOT soymeal futures ended mostly higher Tuesday, with the nearby five contracts up 50 cents to 80 cents per tonne.

 

In CBOT soymeal trades, funds and commercials were light net buyers, brokers said. Term Commodities bought 100 July; Iowa Grain bought 800 May; Man Financial bought 200 May; and Fimat sold 200 May, brokers said.

 

Spot cash U.S. soymeal offers were unchanged Tuesday, sources said.

 

Soyoil futures settled weaker Tuesday, with the nearby five CBOT soyoil contracts down 0.08 cent to 0.14 cent per pound on a lingering correction in the soyoil/soymeal spread.

 

Light pressure also stemmed from a weak close in Malaysian palm oil futures amid worries about slow demand, sources said.

 

In Tuesday's CBOT soyoil trades, Bunge Grain sold 200 May; Man Financial sold 600 May and 100 July; Fimat sold 300 May; Fortis sold 300 May; and Citigroup bought 500 May, brokers said.

 

CBOT May oil share ended Tuesday at 39.60% and the May crush was at 59 cents.