April 24, 2008

 

CBOT Soy Review on Wednesday: Lower; slides late as profit taking set in

 

 

Chicago Board of Trade soybean futures ended lower Wednesday, pulling back from previous gains as profit taking set in after futures carved out new highs for the week, analysts said.

 

May soybeans settled 2 3/4 cents lower at US$13.72, July soybeans finished 4 cents lower at US$13.85 1/2 and November soybeans ended 19 cents lower at US$12.58. July soymeal settled US$3.70 lower at US$356.00 per short tonne. July soyoil finished 26 points higher at 61.96 cents per pound.

 

The exhaustion of buying interest at session highs uncovered speculative profit taking, with the bearish influence of outside markets adding pressure to stymie the early bullish tonnee, analysts added.

 

Nearby futures were firm for most of the day, buoyed by demand driven bullish psychology.

 

Lingering concerns that a resumption of an Argentina farmers strike next week would increase U.S. export demand buoyed prices, as traders added risk premium amid ideas tight projected U.S. inventories could be taken down to the bare minimum if Asian and European business shifts back to the U.S., said Anne Frick, senior oilseed analyst with Prudential Bache in New York.

 

However, as the day unfolded, the demand-driven gains began to lose some of their luster amid talk that the market had already priced in premium for the potential strike as the news has bolstered bullish thoughts all week, analysts added.

 

Meanwhile, new-crop futures were on the defensive, pressed by old/new-crop spreading and lingering concerns that corn-planting delays could lead to increased swing acres shifting to soybeans, analysts said.

 

On tap for Thursday, the U.S. Department of Agriculture is scheduled to release its weekly export sales report at 8:30 a.m. EDT. Trade estimates put soybean export sales at 200,000 to 500,000 metric tonnes. Soymeal sales are projected in a range of 75,000 to 175,000 metric tonnes, with soy oil sales expected in a 5,000- to 20,000-tonne range.

 

U.S. soybean crush for March is expected to be 155.95 million bushels in the U.S. Census Bureau's monthly report, up from the February crush figure of 146.4 million bushels. The Census Bureau's crush report is scheduled for release Thursday at 8 a.m. EDT (1200 GMT). March soymeal stocks are seen decreasing to 317,400 short tonnes, down from the 335,800 tonnes reported for February. Soyoil stocks are seen declining to 2.938 billion pounds in the report, down from 3.076 billion the previous month.

 

In pit trades, buyers and sellers were scattered among various commission houses, with speculative fund buying estimated at 1,000 lots.

 

 

SOY PRODUCTS

 

Soyoil futures ended higher, supported by technically inspired buying, oil/meal spreading and concerns lingering unrest between farmers and the Argentine government could lead to increased soyoil export demand, analysts said.

 

Soymeal futures stumbled lower, pressured by profit taking from Tuesday's strong gains and adjustments in the oil/meal spread relationship, analysts added.

 

July oil share ended at 46.53% and the July crush ended at 79 1/4 cents.

 

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

 

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