February 1, 2008

 

US soy futures dip on weak exports

 

 

US soy futures declined Thursday on the Chicago Board of Trade due to disappointing export turn out and bearish economic signals.

 

March soy was down 7-1/2 cents at US$12.68-1/4 per bushel by 10:40 a.m. CST.

 

The nearby soy contracts retaining strength relative to the back months, after last week's gains. The back months were down 2 to 11-3/4 cents, with new-crop November, down 7-3/4 cents at US$12.21-1/2.

 

Strong demand from the US Gulf helped the CBOT July/Nov spread recover, with July at a 78-cent premium to November as of Wednesday's close.

 

Continuous rain in Brazil's top soy producer, Mato Grosso, also strengthened the spread, traders pointed.

 

CBOT March soymeal was down US$3.70 per tonne at US$339.

 

March soyoil was 0.01 cent weaker at 53.45 cents per pound; the backs were steady to down 0.07 cent.

 

USDA reported that 604,500 tonnes of US soy was sold for export last week, against estimates of 600,000 to 800,000 tonnes.

 

Around 225,800 tonnes of US 2007/08 soymeal was sold last week, also above estimates of 100,000 to 150,000 tonnes.

 

For soyoil, USDA said 97,800 tonnes was sold, above forecasts of 40,000 to 60,000 tonnes, with China booking 30,000 tonnes.

 

The US Census reported that domestic soyoil stocks in December totaled 3.058 billion pounds, up from its December estimate of 3.031 billion issued on January 24 and the November stocks of 3.056 billion.