November 18, 2005

 

CBOT Soy Review on Thursday: Ends up; consolidates wednesday¡¯s losses

 

 

Soybean futures at the Chicago Board of Trade ended firm Thursday, consolidating Wednesday's sharp declines in relatively quiet trade.

 

January soybeans finished 2 1/2 cents higher at US$5.79 1/4, December soymeal settled US$1.40 higher at US$174.80 a short tonne, and December soyoil ended 3 points lower at 22.16 cent a pound.

 

The market managed to stabilize after Wednesday's action, with ideas the losses were a bit overdone and firm cash basis levels generating strength, analysts said.

 

Overall activity was relatively light, with futures effectively consolidating Wednesday's losses, with support at the Oct. 31 low of US$5.73 basis January supporting prices.

 

Nevertheless, bearish sentiment associated with a lagging export pace, favorable South American planting conditions and bird flu worries remain a limiting factor to upside potential, traders said.

 

The USDA said Thursday that 2005-06 marketing year sales totaled 644,800 tonnes, with the primary buyer China at 345,500 tonnes. Pre-report estimates ranged from 500,000 to 700,000 tonnes. Year-to-date commitments and exports are both running 24% behind the pace set last year at the same time.

 

In pit trades, Refco Investor Services bought 500 January, and ADM Investor Services, Calyon Financial, RJ O'Brien and Rand Financial each bought 300 January. Fimat sold 600 January, ABN Amro sold 500 January, Citigroup sold 400 January, and Rand Financial sold 300 January.

 

South American soybean futures ended steady to easier. The March futures settled unchanged at US$6.08.

 

 

SOY PRODUCTS

 

Soymeal futures ended firm, consolidating Wednesday's declines, with higher-than-expected weekly export sales providing fundamental support to prices, traders said.

 

Soymeal sales were 204,700 tonnes, a figure above estimates that ranged from 100,000 to 150,000 tonnes.

 

Soyoil futures stumbled lower amid a mild correction in oil share, with lackluster weekly export sales and lingering worries over building soyoil stocks and large soyoil yields applying overhead pressure.

 

Futures fell to a two-month low, setting a new low for the current move.

 

Net sales of 900 tonnes were reported for soyoil. Trade guesses called for commitments in a range of 2,000 to 7,000 tonnes.

 

December oil share ended at 38.80%, and the December/January crush was at 49 cents.

 

In soymeal trades, ADM Investor Services, Bunge Chicago were featured buyers, with Cargill, Citigroup, Merrill Lynch and Refco key sellers.

 

In soyoil trades, Bunge Chicago, Cargill, Term Commodities, Citigroup, Goldenberg Hehmeyer and Rosenthal were key buyers. ADM Investor Services, Calyon Financial, Fimat, RJ O'Brien and Refco were featured sellers. Commodity fund selling was estimated at 1,000 lots.