May 6, 2008

 

CBOT Soy Review on Monday: Soybeans retreat; trims premium in news void

 

 

Chicago Board of Trade soybean futures ended lower Monday, succumbing to speculative-led sales as the market trimmed premium from prices amid a lack of fresh fundamental news.

 

May soybeans settled 19 1/2 cents lower at US$12.73, July soybeans finished 18 1/2 cents lower at US$12.86 and November soybeans ended 3 cents lower at US$12.15 1/2. July soymeal settled US$7.00 lower at US$331.00 per short tonne. July soyoil finished 11 points higher at 57.37 cents per pound.

 

"There was not a lot of news to direct prices Monday, but softening export demand weighed on old-crop futures and corn planting delays raised thoughts of increased soy acres in swing areas to pressure new-crop contracts," said Brian Hoops, president Midwest Market Solutions in Yanktonne, S.D.

 

Futures experienced subdued trading action for most of the day, with spillover support from strong gains in outside crude oil and precious metal futures providing strength to limit downside potential, analysts said.

 

Nevertheless, the market stayed on the defensive in late dealings, succumbing to worries that soybean exports from Argentina could lead to reduced U.S. soybean demand, said Bill Nelson, grains analyst with Wachovia Securities in St. Louis.

 

The market needs a resolution to what's going on in Argentina as a resumption of exports flowing from Argentina increases the risk for cancellation of previously purchased U.S. exports that were booked as a precaution to a possible stoppage of grain exports due to strike issues in Argentina, Nelson added.

 

The U.S. has a large amount of unshipped soybean export sales on the books that would be susceptible to cancellation, he added.

 

Looking ahead, traders anticipate futures will maintain subdued trading theme heading into Friday's supply and demand reports unless fresh fundamental news surfaces, analysts added.

 

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

 

 

SOY PRODUCTS

 

Soy product futures ended mixed, with soymeal stumbling in unison with soybeans. Talk of adequate cash meal supplies weighed on prices as well, with oil/meal spreading a featured attraction, analysts said. Soyoil futures ended higher, feeding off spillover support from higher crude oil and Malaysian palm oil futures, traders said. Adjustments in the oil/meal spread served as a catalyst to buoy prices, with underlying technical support keeping a floor under prices also, traders added.

 

July oil share ended at 46.09% and the July crush ended at 73 3/4 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 2,000 lots.