November 30, 2006

 

CBOT Soy Review on Wednesday: Finishes lower; speculative buyers lacking

 

 

Chicago Board of Trade soybean futures settled lower Wednesday as the lack of speculative buying interest and profit taking after recent gains pressured prices, sources said.

 

January soybeans ended 4 cents lower at US$6.82 1/4, and March soybeans settled down 3 1/2 cents at US$6.96. January soymeal lost US$2.00 to end at US$196.10 per short tonne, while January soyoil gained 21 points to 29.40 cents a pound.

 

Floor sources attributed the losses to the lack of speculative interest based on the absence of fresh news with end-of-month profit taking and favorable early season growing weather in South America limited buying interest.

 

The losses in soybeans were partly due to the extremely good growing weather that South America is experiencing, a commission house analyst said.

 

In addition, it's the end of the month and the funds were largely absent from the market he added.

 

DTN Meteorologix Weather forecasts continued favorable weather for Brazil and Argentina over the next several days. After rain on Tuesday, the southern Brazilian province of Parana could see possible showers on Thursday, while further north in Mato Grosso up to 1 inch of rain is expected Wednesday with additional rain possible during the end of the week.

 

In Argentina, dry weather is expected Wednesday and Thursday with showers expected during the weekend providing up to 1 inch of rain, DTN Meteorologix Weather said.

 

A late recovery in both corn and wheat from lower levels sparked light position squaring, sources said.

 

In pit trades, Term Commodities bought 1,000 January, JP Morgan bought 00 January and Rosenthal bought 200 January. ABN Amro sold 500 January, Rand Financial sold 500 January and Calyon sold 300 January. Speculative fund selling was estimated at 1,50 contracts.

 

 

SOY PRODUCTS

 

Soy products futures ended mixed as light oil/meal spreading supported oil with soymeal following the tonnee established in soybeans, sources said. Higher crude oil prices also provided support for soyoil, a commission house analyst said.

 

January oil share ended at 42.85% and the January crush ended at 72 1/4 cents.

 

In soymeal trades, buyers and sellers included Fimat which bought 100 January and Man Financial which sold 400 December and 200 January.

 

In soyoil trades, Fimat bought 500 March and JP Morgan sold 500 January.

 

Speculative funds sold 1,500 soy meal and 2,000 soyoil, floor sources estimated.

 

On Thursday, the U.S. Department of Agriculture is scheduled to release the weekly export sales for the week ending Nov. 23. Analysts estimate weekly soybean export sales between 400,000-800,000 metric tonnes, soymeal sales at 75,000-175,000 tonnes and soyoil sales at 0-45,000 tonnes.

 

Thursday is first notice day for December soymeal and soyoil. Analysts expect soymeal deliveries between zero and 1,000 contracts and soyoil deliveries of 300 to 2,000 contracts.