June 21, 2008

 

CBOT Soy Review on Friday: Soy down on weather, options expiration

 

 

Chicago Board of Trade soybean futures followed neighboring pits lower Friday, continuing a correction that traders linked to a favorable weather outlook for late soybean plantings.

 

July soybeans settled 13 cents lower at US$15.32 1/2, and November soybeans ended 12 1/2 cents lower at US$15.09.

 

Traders also linked some volatility to the expiration of July soybean options after Friday's market close.

 

While Corn Belt weather is expected to improve for field conditions, the forecast isn't entirely sunny.

 

"A few showers may dampen the Corn Belt, but the rainfall is not expected to cause new flooding," said agricultural meteorologist Brad Rippey in a U.S. Department of Agriculture forecast. "Early next week, however, rain may become heavier across parts of the Plains and Midwest."

 

"The situation is highly fluid, depending upon weather during the last stage of the planting period and the main growing season that lies ahead over the next two months," Wachovia analyst Bill Nelson said in a research note released Friday.

 

"Soybeans are somewhat different than corn in that there is much more competition from supplies via South America. In theory, high prices could attract a large increase in South America production and a possible curtailment of demand and prices during the latter half of the 2008-09 crop year."

 

A leading sector of striking Argentine farmers said it will stop its road blocks by midnight Saturday as an act of good faith before a congressional debate over the soy export taxes at the heart of the unrest, according to an earlier story by Dow Jones Newswires.

 

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 lower, succumbing to broad-based commodity selling and ignoring supportive outside market forces, including higher crude oil and a weaker dollar. July soymeal settled US$7.80 lower at US$411.70 per short tonne.

 

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

 

July soyoil finished 24 points lower at US$63.88 cents per pound.

 

In soyoil trades, speculative fund trading was estimated at even.