December 25, 2007

 

CBOT Soy Review on Monday: Closes higher on technical strength

 

 

Technical and fund buying carried Chicago Board of Trade soybean futures higher in an abbreviated trading session Monday, floor traders said.

 

January soybeans rose 3 1/2 cents to US$11.81, and March soybeans jumped 3 1/4 cents to US$11.99 1/4.

 

January soymeal climbed US$1 to US$329.20 per short tonne and March soymeal ended up US$1.60 at US$336.50. January soyoil finished up 31 points at 47.46 cents per pound and March soyoil closed up 26 points at 48.00.

 

The soybean market has technical strength after setting 34-year highs in a string of recent sessions, a floor trader said. March soybeans hit a new open auction contract high of US$12.00, topping the previous high of US$11.96 1/2 set Friday.

 

Soybeans slumped in early activity amid profit-taking, traders said. However, the market bounced back as commodity funds bought an estimated 1,000 contracts, they said.

 

Market activity was thinner than usual as many traders stayed home ahead of the Christmas holiday. In pit trades, UBS spread 400 January/March and 300 March/January. Tenco spread 300 July/January and 200 January/March.

 

CBOT corn also ended slightly higher. There are ideas that soybeans need to compete with corn for acreage next year, an analyst said.

 

In South America, Brazil's vast soybean belt has very few weather problems at this time, DTN Meteorlogix said. Periodic shower activity and warm temperatures will favor developing soybeans during the next week to 10 days, the private weather firm said.

 

In Argentina's central crop belt, thunderstorm activity and cooler temperatures during the weekend helped to ease stress to crops. This week's weather is somewhat uncertain as there is a chance that the significant rain will help only a few areas, mainly in the north, Meteorlogix said.

 

 

SOY PRODUCTS

 

Commodity fund buying also boosted CBOT soy product futures. Funds bought an estimated 1,000 soymeal contracts and 1,000 soyoil contracts.

 

Soymeal felt underlying support from ideas that strong demand from livestock feeders will continue, an analyst said. Higher palm oil futures also were seen as supportive to soyoil, a trader said.

 

In pit trades, ADM bought 200 January soyoil. Tenco bought 200 December soymeal.