November 18, 2006

 

CBOT Soy Review on Friday: End up; bounce from earlier losses

 

 

Chicago Board of Trade soybean futures ended higher Friday, bouncing back from earlier declines on late position squaring.

 

January soybeans finished 4 cents higher at US$6.60 1/2, and March soybeans ended 4 cents higher at US$6.72 3/4. December soymeal settled US$0.40 higher at US$190.40 per short tonne, while December soyoil ended 5 points lower at 28.28 cents a pound.

 

The market edged up, climbing to session highs on the close as prices recovered from a two-sided theme, analysts said. The unwillingness of traders to aggressively press the market, after consecutive days of lower closes coupled and a late recovery in corn, provided a boost to attract late buying interest, analysts added.

 

Futures struggled to find support over the course of the day, garnering pressure from opportunistic selling associated with broad-based weakness in commodities in general and bearish weather conditions in South America, traders said.

 

However, as the session drew to a close, the outside influence of a higher price move in corn and crude oil futures gave the market some legs to stand on, lifting futures to session highs on the close.

 

Soybeans followed the leadership of corn, as signs that upside moves of the past month were running out of steam weighed on prices over the course of the day, a broker said. However, long-range demand prospects remained an underlying presence to rekindle buying interest once support from the neighboring grains emerge in late dealings, he added.

 

The DTN Meteorlogix weather forecast said Brazil's far-southern soybean belt has rainfall ahead for this weekend, but northern areas will remain mostly dry and hot. Rainfall of up to 2 1/2 inches is headed for Rio Grande do Sul in the far south. Showers with up to one inch of rain will move into Parana by the end of this weekend.

 

Farther north, Mato Grosso has mainly dry and hot weather ahead through at least the middle of next week. Temperatures will be hot as well, with highs in the range of 95-102 Fahrenheit. Forecast models bring in a chance for rainfall by the end of next week, but this feature will need to be monitored to determine if it is a consistent offering during the next few days, Meteorlogix reports.

 

In pit trades, buyers were scattered among various commission houses. JP Morgan sold 1,400 January, Term Commodities sold 400 January and RJ O'Brien sold 300 January.

 

 

SOY PRODUCTS

 

Soy product ended mostly higher, recovering from earlier weakness on late strength in soybeans. Soyoil futures managed to finish mostly higher, finding price support after crude oil recovered and soybeans made a late charge to session highs, analysts said.

 

Soymeal ended higher, continuing its role of a follower. Spillover strength from soybeans down the stretch served as a supportive influence to produce marginal gains after a two-sided session, traders said.

 

December oil share ended at 42.62% and the December/January crush ended at 69 1/2 cents.

 

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

 

In soyoil trades, buying and selling was scattered among various commission houses.