August 21, 2007

 

CBOT Soy Review on Monday: Mostly lower, but ends near highs

 

 

Chicago Board of Trade soybean futures ended mostly lower Monday, managing to claw their way up to end near session highs on late spillover from other grains and underlying flooding concerns for crops in the upper Midwest.

 

September soybeans settled 1/4 cent higher at US$8.11 3/4, and November soybeans finished 1/2 cent lower at US$8.27 1/4. September soymeal settled US$1.60 higher at US$220.40 per short tonne, and December soymeal settled US$1.20 higher at US$226.90. September soyoil ended 40 points lower at 34.99 cents a pound, and December soyoil finished 26 points higher at 35.79.

 

The market was under pressure for much of the day, as weekend rains across the soybean belt promoted thoughts of rain makes grain, said Brian Hoops, president of Midwest Market Solutions in Yanktonne, S.D.

 

The rains were seen as beneficial for crops heading through there critical pod-filling stage of development, but with flooding in the northern Midwest, declines were tempered, as soy plants sitting in soggy fields promote diseases, Hoops added.

 

Otherwise, activity remained light, with traders continuing to take a cautious approach to the market following last week's volatile trade, analysts said.

 

Cropcast Weather Services said approximately 15% to 20% of the U.S. corn and soybean belt is at risk of further flooding this week. The greatest risk of heavy rains in already saturated areas is seen across northern-central and northeastern Iowa, far northern Illinois, southeastern Minnesota, northern Indiana and northern Ohio, Cropcast said. Many of the areas could easily see rain totals from 2 inches to 6 inches through the end of the week, with some locally heavier totals still not out of the question, Cropcast reported.

 

Meanwhile, significant flooding became an increasing concern during the past weekend for portions of the upper Midwest, as rain totals of 4 inches or more became common throughout much of the region, Cropcast said. However, the most severe problems focused on southeastern Minnesota, northern-central Iowa, and southwestern Wisconsin, where weekend rain ended up largely in the 6- to 9-inch range, Cropcast reported.

 

In other news, Pro Farmer Midwest Crop Tour kicked off Monday morning, with reports of variable conditions found by crop scouts touring fields in the eastern and western Midwest.

 

The U.S. Department of Agriculture is scheduled to release its weekly crop progress report at 4 p.m. EDT. Analysts anticipate crop ratings to stabilize after recent rain events across the belt.

 

In pit trades, Rand Financial bought 300 November, Tenco sold 500 March, and Fimat sold 500 November. Speculative funds were estimated net sellers on the day.

 

 

SOY PRODUCTS

 

Soy product futures ended mixed. Soyoil futures backpedaled, pressured by spillover weakness from crude oil and overnight losses in Malaysian palm oil futures, analysts said.

 

Soymeal futures ended mostly higher, benefiting from end-user buying and the adjustment of meal/oil spreads following last week's activity, traders said.

 

December oil share ended at 44.09% and the September crush ended at 58 cents.

 

In soymeal trades, buyers and sellers were scattered among various commission houses and commercial firms.

 

In soyoil trades, buyers and sellers were lightly scattered among various commission houses, with speculative funds estimated net sellers on the day.