February 9, 2006
CBOT Soy Review on Wednesday: Ends mostly up following corn, kansas city board of trade wheat
Chicago Board of Trade soybean and soy product futures ended mostly higher Wednesday following active fund buying of about 15,000 CBOT corn contracts and a fund-led rally in Kansas City Board of Trade hard red winter wheat futures, brokers said.
Rolling of CBOT March soybean contracts was featured on the second day of the Goldman roll, the five days when index positions are rolled to deferred months ahead of the CBOT March soybean delivery cycle.
CBOT March soybeans ended up 4 cents at US$5.78 a bushel. CBOT March soymeal closed up US$3.50 at US$180.20 a short tonne, and CBOT March soyoil settled down 13 points at 22.15 cents per pound.
In soybean pit trades, Man Financial and the Refco division of Man Financial each bought about 500 March while Rand Financial sold about 500 March, brokers said.
Produce Grain spread 1,900 March/May soybeans while Fimat Futures and Iowa Grain each spread 700 May/March, they noted.
Speculation that the U.S. Department of Agriculture would on Thursday raise its 2005-06 U.S. ending soybean stocks estimate limited Wednesday's soy gains, brokers said.
Analysts forecast the government would report Thursday U.S. 2005-06 soybean ending stocks at 527 million bushels, just below the U.S. record carryover of 536 million bushels set in 1985-86. The analysts' estimates for USDA's ending-stocks estimate this month ranged from 452 million bushels to 555 million bushels.
On Jan. 12, the government forecast 2005-06 U.S. soybean ending stocks at 505 million bushels; U.S. soybean ending stocks in 2004-05 totaled 256 million bushels.
The USDA is scheduled to issue its monthly crop report at 8:30 a.m. EST on Thursday.
CBOT South American soybean futures also ended higher Wednesday. The CBOT March futures settled up 18 cents at US$6.13 per bushel.
In overnight soy export news, Seoul-based Korea Feed Association sought up to 165,000 metric tonnes of U.S. or South American soymeal in a buy tender to be held at 0700 GMT Thursday, a KFA official said Wednesday.
Interior U.S. truck and Gulf of Mexico barge and rail soybean basis bids fell Wednesday, cash sources said.
U.S. soy traders continued to eye South American weather forecasts and early soy harvest reports from Brazil. Moreover, they awaited overnight pricing in China after long liquidation and lingering bird flu concerns weighed on prices this week.
China reported its 11th case of a human infected by bird flu and a new bird flu case in Shanxi province Tuesday night, after 15,000 fowl were found dead from Feb. 2-3.
Soymeal futures ended mixed Wednesday, with the nearby five contracts up US$2.70 to US$3.50 per tonne.
In soymeal trades, Calyon Financial bought 400 March; ABN Amro sold 500 March; Man Financial sold 600 March soymeal while buying 700 March soyoil; and O'Connor and Co. sold 300 March, brokers said.
CBOT March oil share ended at 38.06%, and the March crush was at 67 cents.
Soyoil futures closed lower, with the nearby five contracts down 0.13 to 0.21 cent per lb.
In soyoil trades, commercials were light net buyers while funds were light net sellers. Cargill Inc. bought 300 May and 200 March while the Refco division of Man Financial sold 600 March and 300 May, brokers said.