December 12, 2009

 

CBOT Soy Review on Friday: Modest recovery from lows earlier in week

 

 

Soybean futures at the Chicago Board of Trade ended higher Friday, staging a modest recovery from the week's prior losses, with strong underlying demand supporting prices.

 

CBOT January soybeans ended 8 cents higher at US$10.35, and March soybeans settled 7 1/4 cents higher at US$10.43. For the week January soybeans ended down 8 cents and the March contract dropped 7 1/2 cents.

 

Speculative funds were estimated buyers of 6,000 lots in soybeans, 1,000 lots each in soymeal and soyoil.

 

Technically inspired buying helped lift futures from a choppy, two-sided early theme, with the bullish fundamental influence of strong export demand keeping prices underpinned, analysts said.

 

The market has seemingly settled into a technical range, with upside moves limited by choppy activity in outside markets and lingering concerns about export demand tapering off once South American production comes online.

 

The potential for record supplies from South America added some minor pressure to prices. The market is poised to face a record large year-over-year increase in global soybean supplies, according to estimates from USDA, analysts said.

 

However, near-term demand remains a bullish feature, but as the market transitions into the holiday doldrums very little enthusiasm is mounted by traders in the absence of an aggressive speculative fund presence, a CBOT floor analyst said.

 

Private exporters reported export sales of 232,000 metric tonnes of soybeans for delivery to China during the 2009/2010 marketing year, the U.S. Department of Agriculture said Friday.

 

On tap for Monday, the National Oilseed Processors Association's monthly soybean crush report for November is scheduled to be released at 8:30 a.m. EST (1330 GMT). The soybean crush report for November is expected to decline from the previous month, coming in near 153.4 million bushels, according to a survey of industry analysts.

 

 

Soy product futures ended modestly higher, rising in unison with advances in soybeans, analysts said. A quiet news front produced a relatively subdued trading session as traders showed a lack of conviction amid attempts to recover some prior losses while facing pressure from a firmer U.S. dollar and weakness in crude oil and metal futures, traders said.

 

December soymeal ended US$1.40 higher at US$314.50 per short tonne, while March soymeal settled US$0.90 higher at US$306.50. December soyoil finished 13 points higher at 39.22 cents per pound, while March soyoil ended 12 points higher at 39.57.

 

January oil share was 39.28 while the January soybean crush ended at 72 1/4 cents.