May 9, 2008

 

CBOT Soy Review on Thursday: Up; corn spillover, Argentina strike influence

 

 

Chicago Board of Trade soybean futures ended Thursday's session posting modest gains, garnering spillover support from record high corn futures prices, and underlying support from the Argentina strike.

 

May soybeans settled 1 cent higher at US$12.98 1/4, July soybeans finished 1 cent higher at US$13.10 and November soybeans ended 1/4 cent higher at US$12.45 3/4. July soymeal settled US$1.00 higher at US$335.20 per short tonne. July soyoil finished 39 points higher at 59.55 cents per pound.

 

The market followed the lead of neighboring grain futures for most of the day, with traders spreading corn and wheat against soybeans, as beans have less bullish enthusiasm heading into Friday's supply and demand report, said John Kleist, broker/analyst at Allendale Inc. in McHenry Ill.

 

The market lagged behind corn and wheat, unable to crack overhead resistance at major moving averages to generate upside momentum, he added.

 

Overall activity was subdued, with traders unwilling to take on added risk heading into Friday's reports, with anemic old crop export sales and the bearish psychology of corn planting delays increasing soy acreage potential, limiting upside movement, analysts said.

 

News that Argentine farm groups approved a strike against the government and look to block soybean exports was seen as mildly supportive, but the bullish tonnee was muted by ideas the news was previously factored into prices, a CBOT floor trader said.

 

Mixed signals from outside markets added to the somber tonnee in the market, with pre-crop report positioning a feature, he added.

 

On tap for Friday, the U.S. Department of Agriculture is scheduled to release its monthly supply and demand report, including the first balance sheet projections for the 2008-09 marketing year. The report is scheduled for release at 8:30 a.m. EDT (1230 GMT).

 

The average of analysts' estimates surveyed by Dow Jones project 2007-08 marketing year ending stocks at 152 million bushels, down from 160 million in April. The estimates ranged from 130 million to 160 million bushels. The average of analysts' estimates surveyed by Dow Jones project 2008-09 marketing year ending stocks at 273 million bushels from a range of 158 million to 352 million bushels.

 

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

 

 

SOY PRODUCTS

 

Soy product futures ended higher, feeding off support from soybeans. Soyoil futures rallied, shaking off the bearish influence of losses in crude oil futures, with technical buying and strength in world vegoil markets boosting prices, analysts said. Soymeal futures climbed, recovering from earlier losses. The market benefitted from end of the day short covering and underlying demand, analysts added.

 

July oil share ended at 47.11% and the July crush ended at 82 1/2 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.