November 6, 2007

 

CBOT Soy Review on Monday: Soy, meal end up; recovers from early slide

 

 

Chicago Board of Trade soybean futures ended higher Monday, rebounding from early losses on a recovery in outside inflationary markets.

 

November soybeans settled 4 cents higher at US$10.05 3/4 and January soybeans ended 4 1/4 cents higher at US$10.21. December soymeal settled US$2.90 higher at US$276.90. December soyoil finished 8 points lower at 42.56.

 

A quiet news front kept overall activity light, with outside market influences producing a two-sided session, analysts said. The ability of outside markets to bounce back from their initial losses attracted fresh speculative buying and short covering, said Jack Scoville, analyst with Price Futures Group in Chicago.

 

Spillover support from soymeal amid fresh export demand helped the recovery powers of the market, with technically inspired buying featured as well, Scoville added.

 

Meanwhile, price support from wheat features was an uplifting influence as well, but positioning ahead of Friday's crop report and light hedge pressure from an active harvest weekend applied light resistance to limit upside movement, traders said.

 

The U.S. Department of Agriculture reported 22.105 million bushels of soybeans were inspected for export in the week ended Nov. 1. The figure is down 34.7% from the 33.867 million reported in the previous week. Analysts surveyed by Dow Jones Newswires projected the inspections to fall within a range of 28 million to 33 million. Accumulated soy inspections total 194.189 million bushels, down 23.2% from the 252.772 million bushels reported at the same time last year.

 

The USDA is scheduled to release its weekly crop progress report Monday at 4 p.m. EST. Analysts anticipate the U.S. soybean harvest at 88% to 95% complete.

 

The DTN Meteorlogix weather forecast said that in Brazil's soybean areas, rains of up to one and one-half inches are headed for Mato Grosso and Goias. In general, rainfall and soil moisture favors early growth of soybeans in all areas of Brazil, with the exception of the western Bahia crop region.

 

In pit trades, buyers and sellers were lightly scattered among various commission houses. Speculative fund buying is estimated at 2,000 lots.

 

 

SOY PRODUCTS

 

Soy-product futures ended mixed, with soymeal futures climbing on fresh demand. Soymeal futures ended higher across the board, managing to rebound from early losses on news of fresh export sales to Mexico and spillover support from a recovery in outside inflationary markets, analysts said.

 

USDA announced private exporters reported the sale of 100,064 metric tonnes of U.S. soymeal to Mexico for delivery in the 2007-08 marketing year.

 

Soyoil futures ended lower, unable to sustain a midday climb from negative territory on meal/oil spreading, analysts said. The market was initially pressured by weakness in crude oil futures, but once that market trimmed its losses, soyoil briefly rebounded into positive territory. However, the inability of the market to eclipse Friday's highs coupled with meal/oil spread applied pressure to weigh on prices down the stretch, analysts added.

 

December oil share ended at 43.46% and the November/December crush ended at 71 1/2 cents.

 

In soymeal trades, Bunge Chicago bought 200 December and JP Morgan bought 300 December, with sellers lightly scattered among various commission houses. Speculative fund buying was estimated at 2,000 lots.

 

In soyoil trades, buyers and sellers were scattered among various commission houses, with Tenco a buyer of 300 March.