June 29, 2007

 

CBOT Soy Review on Thursday: End up; consolidates ahead of Friday reports

 

 

Chicago Board of Trade soybean futures ended on firm footing Thursday, quietly consolidating ahead of Friday's acreage and stocks reports, analysts said.

 

July soybeans settled 6 1/4 cents higher at US$8.09 3/4, and November soybeans finished 4 3/4 cents higher at US$8.427 1/4. July soymeal settled US$0.30 higher at US$218.20 per short tonne. July soyoil ended 61 points higher at 35.57 cents a pound.

 

Spillover strength from soyoil, underlying technical support, and bullish long range fundamental outlooks served as underpinning features to support prices, analysts said.

 

The market continued its consolidative theme heading toward Friday's crop reports, as the absence of any near-term weather threats kept prices hovering in a sideways pattern, analysts said.

 

The trade garnered mild support from firming cash prices, with a higher than expected Census Crush figure adding to the mixed as well, traders said. Otherwise, positioning squaring ahead of Friday's reports, month and quarter end were featured attractions.

 

The DTN Meteorlogix forecast calls for additional rains of up to one inch from central and southern Illinois east to Ohio during Thursday and Thursday night. This is very beneficial to corn and soybeans going into the last weekend of June.

 

Major forecast weather models Thursday morning continue to show upper-air ridging making only a minor stretch into the western Midwest during next week. This maintains a favorable weather situation for soybeans entering the flowering phase of their growth cycle, Meteorlogix reports.

 

The U.S. Department of Agriculture is scheduled to release its annual acreage and quarterly grain stock reports Friday at 8:30 a.m. EDT. The average of 20 analysts' estimates pegged 2007 soybean acreage at 67.838 million acres, up from the prospective planting figure of 67.140 million. The average was from a range of 66 million to 69 million acres. Quarterly grain stocks were pegged at 1.076 billion bushels from a range of 909 million to 1.120 billion. Fifteen analysts participated in the stocks survey.

 

In pit trades, Speculative fund buying was estimated at 2,000 lots with ADM Investor Services a buyer of 500 November. Sellers were lightly scattered among various commission houses.

 

 

SOY PRODUCTS

 

Soy product futures ended mixed, soyoil bouncing on technical buying, and spillover strength from palm oil and crude oil futures, analysts said. Lower than expected soyoil stocks reported in the Census Crush report and solid weekly export sales added strength for prices as well, analysts added.

 

Soymeal futures ended mostly lower, succumbing to price pressure from soyoil/soymeal spreading, analysts said.

 

July oil share ended at 44.91% and the July crush ended at 61 1/2 cents.

 

In soymeal trades, buyers and sellers were lightly scattered among commission houses.

 

In soyoil trades, Speculative funds were estimated buyers of 2,000 lots. Tenco bought 1,000 December, Fimat bought 500 December and Bunge Chicago bought 300 August. Fimat sold 500 December and JP Morgan sold 300 December.