December 9, 2008
CBOT Soy Review on Monday: Climb on speculative buys, outside market support
Soybean futures on the Chicago Board of Trade rallied Monday, climbing on speculative buying and short covering amid spillover support from outside markets.
CBOT January soybeans finished 37 cents higher at US$8.20 1/2.
January soymeal settled US$9.40 higher at US$247.70 per short tonne. January soyoil finished 122 points higher at 29.77 cents per pound.
The bullish influence of soaring stock indexes, crude oil and a drop in the U.S. dollar took pressure off prices, opening the door for a technical bounce from recent lows, analysts said.
A quiet news front and lingering economic uncertainty continued to keep traders eyeing movements in outside markets, with technically oversold market conditions generating short-covering interest, the analysts added.
Otherwise, solid underlying export demand remained a supportive feature while improved crop conditions in South America and a lack of fresh news limits upside potential.
Cropcast Weather Services said the forecast for this week has turned quite a bit wetter since Friday in southern and central Brazil. This will be very timely, as moisture deficits have been building across much of that region since mid-November. The expected showers should negate most of these concerns for the time being, Cropcast said.
U.S. soybeans inspected for export in the week ended Dec. 4 totaled 40.633 million bushels. Analysts surveyed by Dow Jones Newswires anticipated inspections in a range of 33 million to 42 million bushels. The inspections represented a 1.9% increase from the previous week. The primary destination for the soybeans was China, which accounted for 24.657 million bushels.
In pit trades, speculative fund buying was estimated at 3,000 lots.
Soy product futures rallied in step with soybeans. Soymeal grabbed product share on spreads amid ample soyoil stocks and component relationship of meal in the crush spread, analysts said.
In pit trades, speculative fund buying was estimated at 2,000 lots in soyoil.
January oil share ended at 37.16% and the January crush ended at 52 cents.