April 19, 2008

 

CBOT Soy Review on Friday: Up; rebounds off early losses, consolidates

 

 

Chicago Board of Trade soybean futures ended higher Friday, bouncing off early losses on underlying demand, acreage uncertainties and end of the week speculative short covering, analysts said.

 

May soybeans settled 11 cents higher at US$13.61 1/2, July soybeans finished 10 1/2 cents higher at US$13.77 and November soybeans ended 2 3/4 cents higher at US$12.81. July soymeal settled US$1.70 higher at US$351.70 per short tonne. July soyoil finished 16 points higher at 61.74 cents per pound.

 

The market is seemingly in a holding pattern, consolidating prior losses, with good commercial demand beneath the market allowing prices to bounce, despite the bearish influence of a firmer U.S. dollar index Friday, said Darrin Newsom, grains analyst with DTN in Omaha, Neb.

 

Two-sided trade was experienced, with a rally to new record highs in crude oil futures and the uncertainties surrounding the possible resumption of a farmer's strike in Argentina providing a psychology bullish to lift old crop futures, analysts said.

 

Old/new spreading was a feature as well amid strong demand, but new crop contracts managed to bounce higher as well, with talk of less rain in Midwest weather forecasts providing strength on ideas an end to planting delays for would reduce some soybean acreage, analysts added.

 

Nevertheless, the market's choppy price action in the past two sessions does not allow traders to read to much into the week's activity, as participants will look for confirmation of possible change in psychology next week depending weather, and demand, Newsom added.

 

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

  

 

Soy Products

  

Soyoil futures ended higher, rebounding from midday losses on a late technical push, spillover from a record climb in crude oil futures and solid underlying demand, analysts said. Soymeal futures finished higher after participating in two-sided action, with underlying demand and positive technical signals providing support despite weakness in the U.S. dollar, analysts added.

 

July oil share ended at 46.79% and the July crush ended at 76 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 buying estimated at 2,000 lots.