November 14, 2006

 

CBOT Soy Review on Monday: Lower; extends retreat from prior highs

 

 

Chicago Board of Trade soybean futures ended lower Monday, extending their retreat from recent highs on speculative sales amid the absence of fresh supportive features.

 

November soybeans finished 4 3/4 cents lower at US$6.46 1/2, and January soybeans ended 5 cents lower at US$6.57 1/2. December soymeal settled US$3.70 lower at US$191.80 per short tonne, while December soyoil ended 30 points higher at 27.99 cents a pound.

 

A lack of spillover support from neighboring corn futures coupled with bearish supply-side fundamentals and favorable planting conditions in South America combined to apply modest pressure to prices, analysts said.

 

The exhaustion of buying interest on the market's initial recovery bounce opened the door for the setback, as fresh news remained scarce throughout the session, a CBOT floor analyst added.

 

The inability of corn futures to sustain its early advances and the ability of nearby soybeans to penetrate Friday's lows attracted technical sellers to drop prices to 1 1/2-week lows, traders say.

 

Monday afternoon at 3 p.m. CST, the U.S. Department of Agriculture is scheduled to release its weekly crop progress report. Analysts anticipate soybean harvest progress in the range of 93% to 95% complete.

 

Meanwhile, analysts surveyed by Dow Jones Newswires anticipate a large increase in the National Oilseed Processors Association October crush report scheduled for release Tuesday 7:30 a.m. CST. The monthly soybean crush report is expected to rise to about 155.7 million bushels, up from the previous report's 137.320 million. Estimates for the report ranged from as low as 151.5 million bushels to as high as 160.0 million bushels.

 

NOPA soyoil stocks in October are expected to decline near 2.591 billion pounds, down from the 2.630 billion pounds in September. Estimates ranged from as low as 2.580 billion pounds to as high as 2.600 billion pounds.

 

In pit trades, buyers were scattered among various commission houses. On the sell side, Man Financial sold 1,200 January, Rand Financial sold 600 January, and Tenco sold 300 January. Speculative fund selling was estimated at 2,000 contracts.

 

South American soybean futures ended lower, with the November future settling 4 cents lower at US$7.06.

 

 

SOY PRODUCTS

 

Soy product futures ended mixed, with soyoil gaining product share on oil/meal spreading. Soyoil bucked the downside theme filtering through the soy complex, finding support on technical buying and product spreading amid the correction in soymeal, analysts said.

 

Soymeal futures fell to a 1 1/2-week low, setting back in unison with soybeans, as the market continues its consolidation from prior advances, traders said.

 

December oil share ended at 42.19% and the November/December crush ended at 83 1/4 cents.

 

In soymeal trades, buyers and sellers were scattered among various commission houses.

 

In soyoil trades, buying and selling was scattered among various commission houses, with Stern a featured buyer of 1,000 January. Speculative fund buying was estimated at 2,000 contracts.