April 12, 2008

 

CBOT Soy Review on Friday: Settles down on broad-based commodity sales 

 

 

Chicago Board of Trade soybean futures ended lower Friday, backpedaling from previous gains on broad-based commodity selling.

 

May soybeans settled 23 1/2 cents lower at US$13.32 1/2, July soybeans finished 23 1/2 cents lower at US$13.49 1/4 and November soybeans ended 8 1/2 cents lower at US$12.62 1/2. May soymeal settled US$7.70 lower at US$344.50 per short tonne. May soyoil finished 23 points lower at 59.94 cents per pound.

 

After a big midweek rally, the market was poised for a setback heading into the weekend, said Bill Nelson, grains analyst with Wachovia Securities in St. Louis, Mo.

 

"There was a rush to liquidity in commodities in general, with a sell-off in equity markets, and uncertainty surrounding farmer strike issues in Argentina encouraging traders to reduce risk exposure heading into the weekend," he added.

 

Argentine President Cristina Kirchner planned to meet with farm group leaders Friday for talks to avoid another strike. Farmers said they will strike again at the beginning of next month if their concerns over a recent increase on the soy export tax are not addressed.

 

Technical selling was featured, with futures consolidating below key overhead resistance levels, traders said. The market had previously satisfied near-term upside technical objectives, opening the door for profit-taking to emerge, traders added.

 

Wet Midwest weather conditions raised fears of possible corn playing delays and increased soy acres, analysts said. Traders will continue to watch weather developments moving forward for signs of planting indications as corn and soybeans continue to vie for undecided acreage intentions, analysts added.

 

Nevertheless, strong export demand continues to underpin prices, with the U.S. Department of Agriculture's announcement of a 240,000 metric-tonne sale of U.S. soybeans to China by private exporters aiding the underlying bullish psychology in the market, analysts said.

 

In pit trades, buyers and sellers were scattered among various commission houses, with speculative funds estimated sellers of 2,000 lots.

 

 

SOY PRODUCTS  

 

Soy product futures stumbled Friday, retreating from previous gains on consolidative sales heading into the weekend.

 

Broad-based weakness in commodities in general set the stage for the declines, analysts said. Pre-weekend profit- taking was featured, with soyoil garnering pressure from crude oil declines, while soymeal was influences by weakness feed grains, analysts added.

 

May oil share ended at 46.52% and the May crush ended at 84 3/4 cents.

 

In soymeal trades, buyers and sellers were scattered among various commission houses, with speculative funds estimated sellers of 1,000 lots.

 

In soyoil trades, buyers and sellers were scattered among various commission houses, with speculative funds estimated sellers of 1,000 lots.