November 23, 2005
CBOT Soy Review on Tuesday: Near steady in quiet, choppy trade
Soybean futures on the Chicago Board of Trade ended at near unchanged levels Tuesday, after chopping around in quiet pre-holiday trading, as traders positioned themselves in the last full trading session of the week, analysts said.
January soybeans finished unchanged at US$5.72 1/4, December soymeal settled US$0.30 lower at US$173.60 a short tonne, and December soyoil ended 5 points higher at 21.98 cent a pound.
The absence of fresh fundamental news produced a low-volume, featureless session, with early short-covering interest supporting prices, while underlying bearish fundamentals provided enough pressure to keep futures hovering within a trading range.
Seasonal trends showing soybean futures prices typically advance heading into the Thanksgiving Day holiday coupled with a firm cash basis amid a lack of farmer movement enabled futures to hold firm for most of the day. It was a "turkey treat" for buyers for most of the day, with seasonal trends encouraging shorts to cover and reel in some profits heading toward the holiday, said Dan Basse, president AgResource in Chicago.
However, choppy action ensued as the session unfolded, with erratic trading emerging in extremely low-volume action. Lingering concerns over the spread of bird flu in Asia, favorable crop conditions in South America and a lagging export pace were bearish influences that helped keep prices hovering in rangebound action, traders added.
Meanwhile, the U.S. soybean crush for October is expected to be 158.0 million bushels in the U.S. Census Bureau's monthly report, up from the September figure of 133.2 million bushels. The Census crush report is scheduled for release Wednesday at 8 a.m. EST. Soyoil stocks are seen increasing to 1.758 billion pounds in the report, up from 1.691 billion the previous month. October soymeal stocks are seen increasing to 272,700 short tonnes, up from 171,600 in September.
In news, extension specialists have reported the discovery of Asian soybean rust on weeds growing in the northwestern part of Georgia, adjacent to the Tennessee state line.
CBOT grain and oilseed markets close at noon CST Wednesday and Friday and will close on Thursday for the Thanksgiving Day holiday.
In pit trades, Rand Financial bought 500 January, ABN Amro and Citigroup each bought 300 January, and Iowa Grain, Merrill Lynch and RJ O'Brien each bought 200 January. Prudential Financial sold 500 March, DT Trading sold 300 January, and Cargill, O'Connor, and Rand Financial each sold 200 January.
South American soybean futures ended higher. The March futures settled 1 cent higher at US$6.06.
SOY PRODUCTS
Soymeal futures ended modestly lower, maintaining a sideways pattern in quiet action. The market lost some ground to soyoil, with the market consolidating amid the absence of fresh fundamental news.
Soyoil futures ended slightly higher, with the market garnering light support from higher energy prices and rumors of China buying South American soyoil supplies. The nearby December futures briefly fell to an eight month low, before gravitating toward the 22.00 strike price heading into the close. Commercials were net buyers while commodity funds net sellers on the day.
Tuesday was the last trading day for options on December soyoil and soymeal futures.
December oil share ended at 38.77%, and the December/January crush was at 51 1/2 cents.
In soymeal trades, Fimat bought 200 December and 500 March, and ADM Investor Services, Bunge Chicago and Tenco each bought 200 December. ADM Investor Services sold 300 January and 300 March, Cargill sold 200 January, and Fimat and RJ O'Brien each sold 200 December.
In soyoil trades, ADM Investor Services bought 200 March, 200 May and 200 July, Bunge Chicago bought 300 January, Cargill bought 300 December, and Term Commodities bought 200 December and 400 January. ADM Investor Services sold 300 January, Fimat sold 900 January, Iowa Grain sold 300 July and O'Connor sold 300 January.
