December 14, 2007
CBOT Soy Review on Thursday: End lower on softer outside markets
Chicago Board of Trade soybean futures ended lower Thursday on spillover pressure from weaker outside markets, analysts said.
January soybeans closed down 5 1/2 cents at US$11.46, and March soybeans fell 4 3/4 cents to US$11.66.
January soymeal closed down 90 cents at US$321.60 per short tonne, and January soyoil ended down 43 points at 46.26 cents per pound.
The soybean market traded higher at times during the day session, but weakness in energies and metals weighed on prices late in the day, an analyst said. The market could not hold up against the spillover pressure, he said.
"Beans have been more of an energy-led market and bio diesel-led market," the analyst said.
The soybean market slipped in early activity but then temporarily retraced those losses as light speculative buying provided support for prices, a commission house analyst said. Strength in soymeal also gave soybeans a temporary boost, an analyst said.
"The product markets are the ones that are driving the bean trade," an analyst said. "When meal took off, the beans turned around. Then, all of a sudden, we saw the outside markets get slammed."
Commodity funds sold an estimated 2,000 soybean contracts. In pit trades, Fimat bought 1,000 March and sold 1,100 January and 500 March. Iowa Grain bought 1,000 March and sold 1,000 January.
U.S. weekly soybean export sales were 972,000 metric tonnes for the week ended Dec. 6, the USDA reported, above the 600,000 to 850,000 tonnes expected by analysts. The sales were seen as supportive, a CBOT floor analyst said.
China, Taiwan and Turkey were the largest buyers on the week. In addition, the USDA also announced a sale of 100,000 tonnes of U.S. soybeans to South Korea for delivery in the 2007-08 marketing year.
Looking ahead, the National Oilseed Processors Association is expected to report the November soybean crush rate at 151.0 million bushels, down from the 154.9 million bushels crushed in October, according to a survey of industry analysts. NOPA's monthly crush report is scheduled to be released Friday at 8:30 a.m. EST (1330 GMT).
Estimates for the report ranged from as low as 149 million bushels to as high of 153 million bushels. One analyst said part of the reason for the decline from last month was that November had one less day available to crush than October.
Soy Products
CBOT soy product futures closed mostly lower as outside market weakness spilled over into the soy complex, an analyst said. Soymeal was stronger earlier in the day session amid expectations that animals will continue to be fed good amounts of meal, an analyst said.
Weekly U.S. soymeal export sales were 90,200 tonnes, within trade estimates of 75,000 to 175,000 tonnes. Weekly soyoil sales were 42,100 tonnes, above expectations of 10,000 to 25,000 tonnes.
Commodity funds bought an estimated 1,000 soymeal contracts and sold an estimated 3,000 soyoil contracts. In soyoil pit trades, Fimat bought 600 March and sold 600 January. Iowa Grain bought 600 March and 300 January and sold 1,000 January.
