December 24, 2005

 

CBOT Soy Review on Friday: Near unchanged in quiet pre-holiday trade

 

 

Soybean futures on the Chicago Board of Trade ended Friday's abbreviated trading session near unchanged levels, as the market stabilized on pre-holiday weekend positioning, traders said.

 

March soybeans finished 1/4 cent lower at US$6.25, March soymeal settled US$0.20 lower at US$203.40 a short tonne, while March soyoil ended 15 points lower at 21.61 cents a pound. For the week, March soybeans were up 22 1/2 cents, March soymeal was US$11.70 higher and March soyoil gained 5 points.

 

A quiet news front and an unwillingness of participants to take on added risk heading into an extended holiday weekend kept activity light, with traders taking the opportunity do some end of the week positioning, analysts said.

 

Reports of heavier-than-expected rains in Argentina Thursday and overnight provided mild weakness to prices, but failed to bring any aggressive selling to the marketplace.

 

The market's ability to withstand selling pressure in the face of overbought conditions following a two-week run that produced gains of 50 cents, shows its underlying technical strength, said Vic Lespinasse, a CBOT commission house broker. General market sentiment that commodity index fund buying will emerge at the start of 2006 has managed to keep sellers at bay as well, he added.

 

Otherwise, activity was fairly quiet, with trade positioning and the rolling of January positions key ingredients in the day's activity.

 

CBOT grain and oilseed markets closed at 12:00 CST Friday and will be closed Monday in observance of the Christmas holiday.

 

Meanwhile, DTN Meteorlogix Weather said Argentina has seen scattered showers with some isolated heavier rain. Some showers are forecast for the next few days in areas, but conditions will generally be dry and hot.

 

In pit trades, Calyon Financial bought 300 March, RJ O'Brien bought 400 March and ADM Investor Services bought 200 March. Rand Financial and Tenco each sold 200 March and RJ O'Brien sold 300 March.

 

South American soybean futures ended lower. The March futures finished 2 cents lower at US$6.49.

 

 

SOY PRODUCTS

 

Soymeal futures ended with light losses, trading an inside day on technical charts as the market took a breather from its strong ascent to higher levels, traders said.

 

Soyoil futures stumbled lower in unison with the rest of the complex, scaling back Thursday's gains amid an absence of fresh supportive inputs to underpin prices. March oil share ended at 34.69%, and the March crush was at 60 1/4 cents.

 

In soymeal trades, RJ O'Brien bought 600 March, Fimat and Refco each bought 200 March and Term Commodities bought 200 January.

 

In soyoil trades, buyers and sellers were scattered among various commercial and commission houses.