September 26, 2009

 

CBOT Soy Review on Friday: End up, consolidate ahead of weekend

 

 

Soy futures on the Chicago Board of Trade ended higher Friday, climbing on pre-weekend consolidative buying following the week's lower price action.

 

CBOT November soy finished 6 1/2 cents higher at US$9.26 per bushel.

 

December soymeal ended US$4.50 higher at US$283.90. December soyoil finished 3 points lower at 34.44 cents per pound. In pit trades, speculative fund selling was estimated at 1,000 lots in soyoil.

 

A quiet news front and mixed signals from outside markets opened the door for futures to stabilize, as the market seemingly treads water awaiting actual yield and production reports from the fall harvest, analysts said.

 

Strong underlying demand was a supportive feature for prices, with depleted old-crop supplies, a rain-delayed southern harvest and developmentally delayed Midwest harvests providing fundamental strength to prices, analysts said.

 

However, the market continued to hover within a sideways trend, unable to generate more than a short-covering bounce. Upside movement remained limited by frost-free weather for late-maturing crops that are expected to lead to record 2009 U.S. soy production.

 

T-storm Weather said rain will end in the central U.S. Saturday, with many areas already drying, including the U.S. Delta. Cool weather early next week will lead to minimum temperatures in the 30s Fahrenheit on Tuesday across the northern Corn Belt, but a killing frost stays north of crop areas. A much warmer weather pattern follows for a few days, which aids maturation since it also remains dry through at least Wednesday.

 

Next weekend, a cooler pattern is probable to return - but a damaging frost is not imminent and chances for a killing frost remain low. Beyond next weekend, unresolved issues exist, with an extended period of dry weather less likely than seasonably wet weather, T-storm Weather said.

 

 

Soy Products

 

Soy product futures ended mixed, with the consolidation of oil/meal spreads weighing on soyoil futures. Soyoil stumbled, with end-of-week position evening and spread-adjusting overshadowing a solid demands base that produced fresh sales throughout the week.

 

Soymeal rose in step with soy, bouncing off previous losses on trade consolidation of flat price actions and spreads.

 

In demand news, private exporters reported to the U.S. Department of Agriculture, listing export sales of 27,000 metric tonnes of soyoil for delivery to unknown destinations during the 2009-10 marketing year.

 

December oil share was 37.76%, while the November/December soy crush ended at 72 3/4 cents.