September 14, 2007
 
CBOT Soy Review on Thursday: Up; consolidates in choppy trade

 

 

Chicago Board of Trade soybean futures ended modestly higher Thursday, quietly carving out the gains in consolidative two-sided trade, analysts said.

 

September soybeans settled 3 cents higher at US$9.28, and November soybeans finished 2 3/4 cents higher at US$9.41 1/4. September soymeal settled US$0.20 higher at US$254.40 per short tonne, and December soymeal settled unchanged at US$261.10. September soyoil ended 21 points higher at 39.08 cents a pound, and December soyoil finished 15 points higher at 39.67.

 

The market was able to hold firm after testing both sides of unchanged, analysts said. The market was in a consolidative mode, finding stability after Wednesday's run to new contract highs amid the absence of fresh news to spark movement, analysts added.

 

The bean market was unwilling to sell off despite heavy losses in wheat, as speculative funds were seemingly content to hold length in the face of bullish longer term fundamental outlooks, said Joe Victor, analyst with Allendale Inc. in McHenry, Ill.

 

The market is entering into an area where it's very attentive to weather in Brazil, and with reports of dry conditions in central northern regions, traders are keeping premium in prices as well as attempting to buy U.S. acres for next year, he added.

 

Nevertheless, overall activity was light. Sellers were reluctant participants while buyers were not presented with any fresh news to challenge new highs, analysts added.

 

On tap for Friday, the National Oilseed Processors Association's August soybean crush is scheduled to be released at 8:30 a.m. EDT (1230 GMT). Soybean crush rates for August are expected to decline to about 138.5 million bushels from the previous report, according to a survey of industry analysts. Estimates for the report ranged from as low as 137 million bushels to as high as 140 million bushels. NOPA soyoil stocks in August are expected to decline by 185 million pounds to 2.650 billion pounds from the 2.835 billion reported in July. Estimates ranged from as low as 2.635 billion pounds to as high as 2.665 billion pounds.

 

In pit trades, speculative fund buying was estimated at 1,000 lots, with ADM Investor Services buying 1,200 November. Sellers were lightly scattered among various commission houses.

 

 

SOY PRODUCTS

 

Soy product futures ended mostly higher, trading inside days on technical charts. The products both took on a consolidative theme, with traders seemingly taking the opportunity to catch their breath after Wednesday's run to new contract highs. Soyoil futures managed to gain some product share once again, with spillover support from higher crude oil futures and lingering concerns over tightening inventories underpinning prices, analysts said.

 

December oil share ended at 43.17% and the September crush ended at 61 1/2 cents.

 

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

 

In soyoil trades, JP Morgan bought 400 December, ADM Investor Services sold 600 October, and Citigroup and Fimat each sold 300 December.