June 24, 2009

 

CBOT Soy Outlook on Wednesday: Down 1-3 cents; following overnight theme

 

 

Soybean futures at the Chicago Board of Trade are seen starting Wednesday's day session modestly lower, taking their lead from overnight action in the absence of fresh news.

 

CBOT soybean futures are seen opening 1 cent to 3 cents lower.

 

A quiet news front and mixed signals from outside markets set the stage for a consolidative session, said Vic Lespinasse, analyst with Grainsanalyst.com.

 

There is potential for two-sided action, with traders eyeing outside markets and Midwest weather conditions for possible direction.

 

Otherwise, positioning ahead of the July delivery period and Tuesday's key acreage and stocks reports is seen as a featured attraction.

 

A technical analyst said first resistance for November soybeans is seen at Tuesday's high of US$10.05 3/4 and then at this week's high of US$10.10. First support is seen at US$9.90 and then at Tuesday's low of US$9.79.

 

DTN Meteorlogix said scattered showers and thunderstorms of .25-1.00 inch with locally heavier amounts are seen for the western Midwest Wednesday. Dry conditions or just a few light showers are expected in the eastern belt. Temperatures will be mostly above normal across the Midwest.

 

Looking ahead, scattered showers move into the eastern Midwest Thursday, with dry conditions or just a few light showers Friday across the region. Scattered showers and thunderstorms move from west to east Saturday-Sunday, with temperatures near to above normal, Meteorlogix said.

 

In demand news, Taiwan's Breakfast Soybean Procurement Association is seeking 60,000 metric tonnes of soybeans from the U.S. or Brazil in a tender that will be opened and concluded Thursday, a BSPA trader said Wednesday. The shipments are expected to arrive in Taiwan between Aug. 1 and Sept. 4, he added.

 

In overseas markets, China's soybean futures traded on the Dalian Commodity Exchange settled slightly higher Wednesday, tracking a Chicago Board of Trade increase overnight. The benchmark January 2010 soybean contract settled 0.2% higher at RMB3,636/tonne.

 

Crude palm oil futures on Malaysia's derivatives exchange fell Wednesday, as spillover weakness from soyoil futures and crude erased some of the previous day's sharp gains. The benchmark September CPO contract on the Bursa Malaysia Derivatives ended MYR36 lower at MYR2,250 a metric tonne.