April 18, 2008

 

CBOT Soy Review on Thursday: Mostly higher; consolidation continues

 

 

Chicago Board of Trade soybean futures finished Thursday's session higher, capping a two-sided session on light short covering as the market consolidates in the absence of fresh market-moving news.

 

May soybeans settled 5 3/4 cents higher at US$13.50 1/2, July soybeans finished 5 1/2 cents higher at US$13.66 1/2 and November soybeans ended 4 3/4 cents higher at US$12.78 1/4. July soymeal settled US$5.20 higher at US$350.00 per short tonne. July soyoil finished 70 points lower at 61.58 cents per pound.

 

Futures have taken on a form of consolidation, stopping to catch its breath after posting fairly large gains for the month, said Greg Wagner, analyst with AgResource Company in Chicago.

 

The market was on the defensive for most of the day, succumbing to speculative profit-taking for the second day in row. The absence of fresh supportive news failed to provide an incentive for buyers to push prices higher, analysts said.

 

The session was similar to Wednesday, with the inability of prices to challenge resistance at the previous day's highs leaving futures vulnerable to profit-taking, said Brian Hoops, president Midwest Market Solutions in Yanktonne, S.D.

 

The market lacked fresh news to stimulate momentum to break futures out of a consolidative phase, with the uncertainties of 2008 acreage and demand keeping many traders taking a cautious approach, analysts said. This continued, with late positive technical signals providing a spark to lift prices down the stretch, analysts added.

 

Looking ahead, traders anticipate a choppy theme will linger, with market uncertainties producing reluctant sellers, while buyers pause before building another base to move higher, a CBOT trader said.

 

Outside market influences remain wildcards that could alter price movement in either direction, he added.

 

In pit trades, buyers and sellers were scattered among various commission houses.

 

 

SOY PRODUCTS

 

Soyoil futures ended lower, extending the consolidative correction from prior gains, analysts said.

 

The market lacked fresh supportive news to keep the bulls charging higher, with lower-than-expected weekly export sales, and a lack of support from outside markets attracting sellers, analysts added.

 

Soymeal futures ended higher, buoyed by positive technical signals, solid underlying demand and the unwinding of oil/meal spreads, traders said.

 

July oil share ended at 46.80% and the July crush ended at 81 cents.

 

In soymeal trades, buyers and sellers were scattered among various commission houses.

 

In soyoil trades, buyers and sellers were scattered among various commission houses, with speculative fund selling estimated at 2,000 lots.