December 4, 2008
CBOT Soy Review on Wednesday: Higher; attracts buying after recent break
Chicago Board of Trade soybean futures ended higher Wednesday, managing to uncover buying interest after its recent slide to 1 1/2 year lows.
CBOT January soybeans finished 3 cents higher at US$8.30.
January soymeal settled US$1.40 higher at US$246.70 per short tonne. January soyoil finished 19 points lower at 30.58 cents per pound.
The market found some support to correct off its recent dip, as there was not much in the way of any fresh directive news, said Mario Balletto, analyst with Citigroup in Chicago.
The outside markets did not provide any weakness for a change and the market managed to find some stability, Balletto added.
Overall activity was thin, with futures climbing after an early drop to a new move low failed to attract follow through selling and outside markets pared their early setbacks.
Once prices edged higher, the market held firm for the rest of the day, but traders continued to take a cautious approach, unwilling to take on added risk in the face of economic uncertainty, analysts added.
The DTN Meteorlogix weather forecast said very little rainfall is headed for southern Brazil and Argentina during the last half of this week. In southern Brazil, drier and somewhat warmer temperatures will reduce available soil moisture for the soybean crop. Argentina will be dry as well; however, recent rains have provided a notable improvement in soil moisture to the extent that soybean-planting activity has increased.
In pit trades, speculative fund buying was estimated at 3,000 lots.
On tap for Thursday, the U.S. Department of Agriculture at 8:30 a.m. EST Thursday will issue its weekly export-sales report. Soybean sales are estimated at 500,000 to 700,000 tonnes. Soymeal sales are projected in a range of 70,000 to 100,000 metric tonnes, with soyoil sales expected in a zero-to-10,000-tonne range.
Soy product futures ended mixed, with soymeal gaining product share on spreads. Soymeal futures climbed in unison with soybeans, while soyoil stumbled after testing both sides of unchanged on weakness in world vegoil markets and late weakness in crude oil futures, analysts said.
January oil share ended at 37.91% and the January crush ended at 49 cents.