June 3, 2008

 

CBOT Soy Review on Monday: Rise; outsides, demand offset acres fear

 

 

Chicago Board of Trade soybean futures finished Monday's session with modest gains, advancing on a combination of supportive outside market influences, optimistic demand outlooks tied to the Argentine farmers' strike and technical support.

 

July soybeans settled 2 cents higher at US$13.65 1/2 and November soybeans ended 4 cents higher at US$13.58 1/2. July soymeal settled US$1.50 higher at US$343.00 per short tonne. July soyoil finished 39 points higher at 61.70 cents per pound.

 

Futures experienced two-sided activity during the day, taking on a mixed tonnee for most of the session before supportive fundamentals and technical strength attracted buying to support a higher close, analysts said.

 

Follow through buying from Friday, and planting delays from rain moving through the Midwest underpinned prices initially, said Tim Hannagan, analyst with Alaron Trading in Chicago.

 

However, as the session unfolded, the rainy forecasts created some bearish psychology amid ideas the planting slow downs in corn due to the rain would lead to increased soybean acres, Hannagan added.

 

Old/new crop spreading was featured, with nearby contracts gaining at the expense of deferred months. The front end of market was supported by ideas the lingering Argentine farmers strike will continue to generate near term export demand, while the back end was weighed by acreage outlooks, analysts added.

 

Overall activity was relatively subdued, with prices continue to hover inside a 2-month old sideways trading range.

 

U.S. Department of Agriculture weekly crop progress report is expected to show U.S. soybean planting is 70%-75% complete, traders said. A week ago, planting was 52% complete. The crop progress report is due out at 4 p.m. EDT.

 

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

 

 

SOY PRODUCTS

 

Soy product futures ended higher after a mixed session. The markets bounced on bullish psychology associated with a turnaround in outside markets, technical buying and optimistic demand outlooks attributed to unresolved strike issues in Argentina, analysts said. Soymeal futures continue to garner support from firm cash market prices, while soyoil feeds off the supportive tonnee in crude oil futures, analysts added.

 

July oil share ended at 47.35% and the July crush ended at 67 3/4 cents.

 

In soymeal trades, buyers and sellers were scattered among various commission houses, with speculative fund buying 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.