October 18, 2007

 

CBOT Soy Review on Wednesday: Down; consolidative trade; mimics soyoil,crude

 

 

Chicago Board of Trade soybean futures ended lower Wednesday, pulling back after testing both sides of unchanged levels in consolidative trade.

 

November soybeans settled 3 1/4 cents lower at US$9.74 1/4 and January soybeans ended 3 3/4 cents lower at US$9.93. December soymeal settled US$1.00 lower at US$274.90. December soyoil finished 8 points lower at 40.15.

 

A quiet news front kept the market following the lead of soyoil and crude oil for most of the day, analysts said.

 

New contract highs set in soyoil and new all-time highs in crude oil attracted speculative buying to underpin prices for most of the day, traders said. However, as those markets pulled off their highs and retreated lower, soybeans were left without a crutch to hold prices in positive territory, a CBOT floor analyst said.

 

Meanwhile, improved planting conditions in Brazil, spillover pressure from neighboring grains and a general lack of fresh supportive fundamental news applied pressure to weigh on prices, traders added.

 

The DTN Meteorlogix Weather Services forecast said the balance of this week looms as a wet and harvest-delaying period for Midwest weather. Wet or very wet weather is on tap for the western Midwest, with showers working eastward into the eastern Midwest as well. The rainfall likely means delays and disruptions to corn and soybean harvests.

 

The U.S. Department of Agriculture is scheduled to release weekly export sales figures for the week ended Oct. 11 at 8:30 a.m. EDT Thursday. Trade estimates put soybean export sales at 400,000 to 1,000,000 metric tonnes. Soymeal sales are projected in a range of 75,000 to 150,000 metric tonnes, with soyoil sales expected in a range from zero to 20,000 tonnes.

 

In pit trades, UBS Securities bought 300 January, Iowa Grain sold 600 January, ADM Investor Services and MF Global sold 300 January.

 

 

SOY PRODUCTS

 

Soy product futures ended mixed, with soyoil finishing a volatile two-sided session mostly steady. Soyoil futures rallied to new contract highs, and set new 23-year highs, buoyed by a surge to new all-time highs in crude oil and strength in world vegoil markets, analysts said. However, a late retreat in crude oil from its highs sent prices backpedaling, with technical selling surfacing as the market lacked underpinning strength without crude gains, analysts added.

 

Soymeal futures ended lower, pressured by weakness from soybeans, but futures did gain support from late oil/meal spread unwinding, traders said.

 

December oil share ended at 42.21% and the November/December crush ended at 72 1/4 cents.

 

In soymeal trades, buyers and sellers were scattered among various commission houses, with Tenco buying 600 December and Fimat selling 300 December.

 

In soyoil trades, ADM Investor Services, Bunge Chicago, JP Morgan and RJ O'Brien each bought 300 December. Iowa Grain bought 700 December. Bunge Chicago, Iowa Grain, UBS Securities and RJ O'Brien each sold 300 December, Fimat sold 300 December, 400 January and 600 March.