April 26, 2006

 

CBOT Soy Review on Tuesday: Up on US planting weather, soyoil gains

 

 

Chicago Board of Trade soybean futures ended higher Tuesday on late speculative buying and forecasts for good U.S. corn planting weather this week that prompted ideas of increased U.S. corn acreage at the expense of soy, brokers said.

 

Gains in CBOT soyoil futures, after Statistics Canada reported Tuesday 2006 canola plantings of 11.597 million acres, below the 13.569 million planted in 2005, also underpinned soybeans, they noted.

 

CBOT July soybeans settled up 5 cents at US$5.93 1/4 while new-crop November closed up 4 1/2 cents at US$6.13 3/4 per bushel.

 

Man Financial bought 3,000 July soybeans late and UBS bought 1,500 July, brokers said. Earlier, ADM bought 200 May and 400 July; Fimat bought 300 July and sold 100 May; and JP Morgan, Rand Financial and Tenco Inc. each sold 200 July, they said.

 

Speculative commodity funds were thought to be net short about 41,000 CBOT soybean futures before Tuesday's open outcry session, they added.

 

Rolling of CBOT May soybean and soy product futures into July seen ahead of Friday's first notice day for CBOT May soy futures.

 

Term Commodities and Fimat each spread 500 May/July while the latter also spread 800 July/November, brokers said.

 

Cash U.S. soybean basis bids were mixed Tuesday while midday U.S. barge bids were steady, cash sources said.

 

Rain-delayed harvests in Brazil, forecast to be the top global soybean exporter this year, were also supportive to CBOT soybean futures. The delays were expected to lead to crop losses, brokers said.

 

Brazilian analysts Safras & Mercado estimated a 55.9-million-metric-tonne soy harvest in April, but an analyst at the firm said the estimate would be lowered in May following excessive rainfall in Mato Grosso, Goias, Bahia and Minas Gerais states.

 

CBOT South American July soybeans closed Tuesday up 5 cents at US$6.21 per bushel.

 

In CBOT exchange news, traders expected members of the board of directors of CBOT Holdings Inc. (BOT), the parent company of the Chicago Board of Trade, to vote Tuesday afternoon in a regular monthly meeting on a proposal to begin June 15 simultaneous electronic grain trade during open outcry grain trading hours, otherwise referred to as "side-by-side" trade.

 

The 158-year-old exchange, which began as a grain trading institution, already trades financial instruments electronically during open outcry trading hours.

 

 

SOY PRODUCTS

 

CBOT soymeal futures ended mixed Tuesday, with nearbys recovering after speculative funds sold about 1,200 lots by 1330 EDT and Bunge Grain sold 900 May soymeal.

 

Funds were thought to be net short about 24,500 CBOT soymeal futures before Tuesday's open outcry trade, brokers said.

 

CBOT July soymeal ended up 20 cents at US$174.40 per tonne and new-crop December soymeal closed up 30 cents at US$178.70 per tonne.

 

In other notable soymeal trades, Fimat bought 200 July, 200 December and 100 May, Prudential Financial and Rand Financial each sold 300 May and ADM spread 600 May/July, brokers said.

 

Cash U.S. high-protein soymeal basis offers were steady to down US$1.00 per tonne Tuesday, cash sources said.

 

CBOT soyoil ended higher Tuesday on speculative buying and Statistic Canada's estimate of smaller-than-expected 2006 canola plantings of 11.597 million acres, below the 13.569 million planted in 2005.

 

July soyoil closed up 30 points at 25.26 cents and December settled up 35 points at 26.22 cents per pound.

 

Speculative commodity funds bought 1,700 lots by 1330 EDT, commercials were noted on both sides. Funds were thought to be net long about 37,350 CBOT soyoil futures before Tuesday's open outcry session.

 

FC Stonnee bought 300 December, Bunge Grain sold 300 July, and Iowa Grain bought 600 December and 100 July, brokers said.

 

In soyoil spread trade, Term Commodities, ABN Amro and Produce Grain each spread 200 November/July soyoil.

 

CBOT July oil share ended Tuesday at 42.00% and the July crush was at 68 1/4 cents.