April 28, 2006

 

CBOT Soy Outlook on Friday: Beans seen up 3-4 cents on overnight session

 

 

Analysts expect Chicago Board of Trade soybean futures to open 3 cents to 4 cents a bushel higher Friday, based on a firmer overnight trade and follow-through buying from Thursday's late rally.

 

In the e-cbot session, July soybeans gained 4 3/4 cents to US$5.95 1/4, July soymeal was up US$2.10 at US$174.00 a short tonne and July soyoil rose 11 points to 25.76 cents a pound.

 

"I can't tell you any good reason to be bullish beans, but people are willing to buy them," said Brian Doherty, analyst at Stewart Peterson Group in West Bend, Wis.

 

The delivery period began for the grain and soybean markets, and bean deliveries were less than some participants expected.

 

Soybean deliveries totaled 1,266 notices and were issued by ABN Amro at 750 and R.J. O'Brien at 516, the CBOT reported. J.P. Morgan stopped 541, Man Financial stopped 231, ADM stopped 175, and Prudential Financial stopped 108 of them.

 

Some traders and analysts were looking for up to 2,000 deliveries.

 

Meanwhile, weekend rains in the Delta and the eastern Midwest will slow planting efforts while the western Midwest also is expected to see rain-interrupted plantings, the DTN Meteorlogix weather firm said.

 

While there is still plenty of time to get seed in the ground, Doherty said there may be perceptions that if this wet pattern continues, "we could have trouble." But rains this weekend don't mean farmers won't be able to resume planting next week and still get the crops planted in time.

 

Soybean futures on China's Dalian Commodity Exchange rose on physical buying by feed-meal producers ahead of a weeklong Labor Day holiday. The September contract for No. 1 soybeans rose RMB15 to RMB2,622 a metric tonne.

 

Soymeal settled higher, with the November contract up RMB25/tonne to RMB2,298/tonne. September soyoil futures rose RMB30/tonne to RMB5,160/tonne.

 

Soybean prices in Rotterdam, Germany, were mostly lower Friday afternoon.

 

Soy Products

 

 

The product markets also are seen opening higher on the firm overnight session and expected strength in soybeans.

 

Deliveries for soyoil totaled 916 and were issued by Bank of America Securities. Prudential Financial, R.J. O'Brien and Man Financial stopped the bulk of the deliveries, the CBOT reported.

 

No soymeal deliveries were reported.

 

Malaysian palm oil futures rose on the late rally in CBOT soyoil and on the additional e-cbot price gains. Traders were reluctant to buy too aggressively, however, ahead of the long weekend. Malaysia observes its national Labor Day holiday on Monday.

 

July crude palm oil futures on the Bursa Malaysia Derivatives closed MYR8 higher at MYR1,481/tonne.

 

India raised its CPO base import price by US$7 to US$427/tonne. The base price for crude soyoil was left unchanged, however. It raised the base import price for crude palmolein to US$449/tonne from US$442/tonne.

 

The government doesn't normally explain the price moves, but analysts say the change in base prices can reflect fluctuations in international edible oil prices.