CBOT Soy Review on Wednesday: Ends higher; consolidates orior losses
November soybeans ended 8 cents higher at US$10.53.
December soymeal settled US$1.20 higher at US$286.20 per short tonne. December soyoil finished 20 points higher at 44.68 cents per pound.
The market staged a relief rally, breaking away from outside influences, as technically oversold conditions and reports of below-average yield reports provided support to attract buyers, analysts said.
"The market was hammered lower in prior sessions, but after satisfying near-term downside objectives, futures were overdue for a bounce," said Jack Scoville, analyst with Price Futures Group.
Outside market influences had previously weighed on futures, but after a US$1.19 break in prices, the market looked like it had reached a near-term bottom from a chart standpoint, Scoville added.
Otherwise, a quiet news front kept activity light, with buyers still hesitant to aggressively push prices in the face of economic woes.
The world's economic crisis has not been solved, so there remains opportunity for additional liquidation to surface, but Wednesday's gains could be the start of a consolidative phase, a CBOT floor broker added.
Meanwhile, across the U.S. Midwest, conditions remain favorable for late-season crop maturation and harvest. The DTN Meteorlogix forecast calls for no significant cold weather during the next 10 days. Despite a slight risk for patchy frost in the north, crops should be allowed to mature slowly during this period. Any chance for wet weather slowing early harvests is mostly in the west and mostly late in the 10-day period.
In pit trades, speculative fund buying was estimated at 2,000 lots.
SOY PRODUCTS
Soy product futures ended higher, bouncing in unison with soybeans. Technical buying was featured as the market recovered from oversold conditions.
December oil share ended at 43.89% and the November/December crush ended at 68 1/4 cents.
Speculative fund buying was estimated at 1,000 lots in soymeal and in soyoil.
