November 12, 2005

 

CBOT Soy Review on Friday: Mostly up as soybeans hit 1-week high

 

 

Soy complex futures at the Chicago Board of Trade closed the week strongly, with soybean futures rising to one-week highs.

 

Most-active January soybeans on Friday rallied 14 cents to US$6.01 1/2 a bushel, December soymeal rose US$6.20 a short tonne to US$181.70 and December soyoil lost 3 points to 22.74 a pound.

 

The market started firmer and held those gains throughout the session, slowing building on that early strength.

 

The market was boosted by strong seasonals and U.S. cash prices, traders said, as January soybean rose to the US$6 level.

 

Fund buying was a factor in the market on Friday, as they bought at least 4,000 contracts in late trade.

 

"Soybeans have been down for months. The Gulf basis was stronger and the farmer selling was down as they hang on to what they have. We thought we'd see sales once we made it to US$6," said Sid Love, of Joe Kropf/Sid Love Consulting, Overland Park, Kan.

 

Underlying strength throughout the session came from commercial stopping of November bean deliveries.

 

Amid the bullish enthusiasm was lingering chatter about purchases of soybeans by China, up to 10 to 12 cargoes, despite new cases of bird flu in the Asian nation.

 

The market ignored news of Asian rust finds in Texas for the first time and in two new Alabama counties. "Maybe it will be there next year. Rust shows up more in the second and third year than in the first, at least in Brazil, so we'll see," Love said.

 

Buyers in soybeans included ADM buying 400 January; ABN Amro buying 1,300 January; Citigroup and Man Financial each buying 300 January; and Rand buying 1,500 January. Sellers include Bunge selling 300 January, R.J. O'Brien selling 500 January and D.T. Trading selling 600 January.

 

 

SOY PRODUCTS

 

Soy products ended mixed, with soymeal strong and soyoil slightly weaker.

 

Soymeal rose on Friday, supported by ideas of good meal usage and profitable crush margins, traders said. Funds were solid buyers, traders said, while sellers in soyoil. Meanwhile, commercials were buyers in soyoil.

 

In soymeal, buyers included ABN Amro buying 500 December; Man Financial buying 300 December; O'Connor buying 200 December; R.J. O'Brien buying 300 December; Rand buying 400 December; and SA Inc buying 800 March. Sellers included Fimat selling 200 December.

 

In soyoil, buyers included ADM buying 200 December, 100 March, 200 May and 100 July; Citigroup buying 200 December and 100 January; and Tenco and Rosenthal each buying 200 December. Sellers included Bunge selling 200 January, 300 December and 200 July; FIMAT selling 200 January and 300 December; and R.J. O'Brien selling 200 December.