March 28, 2007

 

CBOT Soy Review on Tuesday: Grinds lower in light, featureless trade

 

 

Chicago Board of Trade soybean futures ended lower Tuesday, carving out modest declines on light speculative and local selling pressure.

 

May soybeans ended 1 1/2 cents lower at US$7.57, and November soybeans finished 1 1/2 cents lower at US$7.99 3/4. May soymeal settled US$1.10 lower at US$214.20 per short tonne, while May soyoil ended 14 points higher at 31.81 cents a pound.

 

A quiet news front promoted range-bound, consolidative trade for most of the day, with futures gravitating toward technical support beneath the market, analysts said.

 

Trade positioning ahead of Friday's planting and stock report served as a catalyst for the declines, with selling gradually accelerating down the stretch as the nearby May futures tested support at the 50-day moving average, traders added.

 

The active May futures settled on their 50-day moving average, marking the first time since the contract did settle above that level since Jan. 11. Otherwise, activity was subdued, quietly plodding along in the absence of fresh news.

 

Meanwhile, underpinning support from speculation over 2007 U.S. soybean acreage continues to limit downside pressure, but with a sizable drop in acres already discounted in the market, some speculative traders continue to take some profits, a CBOT floor analyst said.

 

The DTN Meteorlogix Weather Service forecast said rain is expected over the next couple days across the region, with heavier amounts to the west, where up to 2.5 inches will be seen by Saturday. In the eastern end of the region, which has been the wetter area, there will be rain interspersed with relatively dry periods over the rest of the week. Those dry periods will be welcomed by farmers looking to get out in the fields to plant.

 

In pit trades, USA Trading bought 400 May, ADM Investor Services and JP Morgan each bought 200 May. Sellers were scattered among various commission houses.

 

 

SOY PRODUCTS

 

Soy product futures ended mixed with soyoil and soymeal diverging over price direction. Soyoil futures ended higher, underpinned by soyoil/soymeal spreading, traders said. Consolidative trade was the theme of the day, with the market continuing trade within Friday's wide trading range.

 

Soymeal futures ended lower, pressured by light speculative selling in tune with soybeans. Spreading between the products added to the lower tonnee, with spillover from soybeans a feature.

 

May oil share ended at 42.61% and the May crush ended at 64 1/4 cents.

 

In soymeal trades, FCStonnee bought 300 July, Fimat bought 200 May and RJ O'Brien bought 200 July. ADM Investor Services sold 200 December and Rand Financial sold 200 December.

 

In soyoil trades, Bunge Chicago bought 200 December, Calyon Financial bought 200 May, Fimat bought 500 May, and Rand Financial bought 400 July. Bunge Chicago and Citigroup each sold 200 May, and JP Morgan sold 400 May. Speculative fund buying was estimated at 2,000 lots.