May 13, 2008

 

CBOT Soy Review on Monday: Retreats; consolidates recent gains

 

 

Soybean futures at the Chicago Board of Trade ended lower Monday, pulling back from Friday's sharp gains on consolidative sales amid the absence of fresh news.

 

May soybeans settled 14 1/2 cents lower at US$13.35, July soybeans finished 15 1/2 cents lower at US$13.42 1/2, and November soybeans ended 14 1/2 cents lower at US$12.89 1/4. July soymeal settled unchanged at US$338.50 per short tonne. July soyoil finished 72 points lower at 61.28 cents per pound.

 

The market lacked fresh supportive news to sustain a bounce after Friday's tight ending stock projections from the U.S. Department of Agriculture, said Bill Nelson, grains analyst with Wachovia Securities in St. Louis, Mo.

 

The USDA numbers produced bullish psychology, but with the uncertainties of 2008 acreage and the unresolved issues of the Argentine strike lingering, traders took a wait-and-see approach amid the market's inability to challenge overhead resistance levels, analysts said.

 

Traders are keeping a close eye on weather forecasts for clues to planting progress, with the market seemingly settling into a near-term range, awaiting clarity of final acreage and how the crop develops, analysts added.

 

Nevertheless, futures continued to hold above major moving average support levels, keeping traders viewing the session's losses as more of a consolidative correction than any near-term trend, a CBOT floor broker said.

 

A sharp decline in crude oil futures provided mild pressure to offset early advances, with traders looking ahead to potential planting opportunities in the Midwest next week to advance corn and soybean seedings, analysts added.

 

The USDA is scheduled to release its weekly crop progress report at 4 p.m. EDT (2000 GMT). Analysts anticipate the soybean plantings pace near 16% complete as of Sunday.

 

In pit trades, buyers and sellers were scattered among various commission houses, with speculative fund selling estimated at 3,000 lots.

 

 

Soy Products

 

Soy product futures ended mixed, with soyoil correcting from Friday's spike higher. Spillover pressure from soybeans and the outside influence of a setback in crude oil prices set the stage for the lower tonnee that attracted profit-taking pressure, analysts said.

 

Soymeal futures ended steady to marginally higher, managing to carve out modest gains on light oil/meal spread unwinding, analysts added.

 

July oil share ended at 47.51%, and the July crush ended at 76 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 selling estimated at 2,000 lots.