April 22, 2006

 

CBOT Soy Review on Friday: Weak; weekend fieldwork eyed

 

 

U.S. soybean futures ended weak Friday as pre-weekend evening offset early fund buying and as forecasts pointed to improving conditions for U.S. Midwest fieldwork and corn plantings, brokers said.

 

A weakening dollar, which aids U.S. oilseed exports, and higher CBOT soyoil prices amid higher energy futures limited Friday's CBOT soybean losses, brokers said.

 

"In general, the weather pattern is becoming more favorable for field work to finish out the month of April across the U.S. corn belt, as well as the spring wheat areas of the northern Plains," said DTN Meteorlogix.

 

The lower CBOT soybean close bucked a trend seen for the past 10 of 15 Friday sessions wherein the market closed higher, traders noted.

 

CBOT May soybeans ended down 1 1/2 cents at US$5.69 3/4. New-crop November settled down 1 1/4 cents at US$6.04 per bushel.

 

Tenco Inc. sold about 300 July; JP Morgan and Calyon Financial each sold 200 July; and Citigroup, R.J. O'Brien, O'Connor and Fimat each bought about 200 July, brokers said.

 

Man Financial spread 5,000 May/July and SA Trading spread 1,000 May/July ahead of first notice day April 28 for deliveries against the CBOT May soybean contract.

 

The Refco division of Man Financial was an active options trader, buying 1,800 June US$6.00 calls and selling 900 June US$5.80 calls. The firm also bought 1,300 June US$5.70 puts and sold 1,300 May US$5.70 puts.

 

Early CBOT soybean weakness in part followed losses in China overnight on fears that soymeal demand will not improve in the near term amid bird flu, brokers noted. China announced its 12th human death from avian flu on Friday.

 

Spot midday U.S. Gulf soy bids firmed 2 cents while U.S. Midwest interior basis bids were firm amid slow farmer sales, cash sources said.

 

CBOT South American soybean futures ended mixed Friday. The CBOT SAS July futures settled up 4 cents at US$6.08 per bushel, while the May futures contract closed down 3 cents at US$5.95.

 

 

SOY PRODUCTS

 

CBOT soymeal futures ended weak Friday following losses in soybeans, with July soymeal down 80 cents at US$172.00 per tonne.

 

Funds sold about 1,600 lots, brokers said. JP Morgan was a late seller of 900 July while Fimat Futures bought 300 July and Bunge Grain bought a net 300 July on the day.

 

Man Financial spread 1,500 May/July soymeal.

 

U.S. interior high-protein soymeal basis bids were unchanged Friday, sources said.

 

CBOT soyoil settled higher Friday on hopes for increased U.S. biodiesel production and soaring energy prices, despite ample current U.S. soyoil stocks, brokers said.

 

CBOT July soyoil closed up 0.54 points at 25.06 cents per pound.

 

Speculative funds bought about 8,000 CBOT soyoil futures Friday, bringing the weekly total to about 30,000 contracts, brokers said. UBS bought 1,500 July, Calyon Financial and R.J. O'Brien each bought about 300 July, and Man Financial bought 900 July, brokers said.

 

Produce Grain spread 300 May/July and 400 July/December, they added.

 

The gains bucked a lower close in rival Malaysian palm oil futures on profit-taking following recent gains and ahead of a key weekend conference, they noted.

 

Influential analysts such as Dorab Mistry, director of Godrej International, and Thomas Mielke, editor of OilWorld, are due to present papers at a conference in Dubai Saturday and Sunday.

 

CBOT July oil share ended at 42.15%, after making a new high, and the July crush was at 70 3/4 cents.