May 26, 2006

 

CBOT Soy Review on Thursday: Mostly up ahead of holiday weekend

 

 

Chicago Board of Trade soybean futures ended mostly firm Thursday on late buying ahead of a holiday weekend after a quiet, rangebound trading session, brokers said.

 

U.S. grain futures exchanges will be closed on Monday in observance of Memorial Day. Futures markets close at normal hours on Friday.

 

Early fund sales, favorable U.S. Midwest crop weather and disappointment about a smaller-than-expected April Census soybean crush figure and only modest weekly U.S. soybean export sales of 252,500 tonnes weighed on CBOT soybean futures early, brokers said.

 

The U.S. Census reported U.S. April soybean crush totaled 135.3 million bushels, below the 137.5 million average analyst estimate.

 

CBOT July soybeans settled Thursday up 1 3/4 cents at US$5.84 1/4 per bushel and new-crop November ended up 1 1/2 cents at US$6.08 3/4.

 

Funds sold 2,400 lots by 1230 EDT, led by sales of 2,000 July by the Refco division of Man Financial.

 

Fortis Trading sold 500 July, DT Trading bought 300 July and crushers bought 500 July soybean, brokers said.

 

Midday spot soy Gulf barge bids fell 1 cent while cash interior basis bids were mixed.

 

The spot cash bid firmed 4 cents in Omaha and Council Bluffs, firmed 3 cents in Sioux City, Iowa and fell 3 cents in Louisville, Ken.

 

Private exporters reported to the U.S. Department of Agriculture export sales of 120,000 metric tonnes of soybeans for delivery to unknown during the 2006/2007 marketing year, the USDA said Thursday.

 

 

SOY PRODUCTS

 

CBOT soymeal futures end mixed Thursday after funds bought early and then sold, and after the U.S. Census Bureau reported larger-than-expected U.S. April soymeal stocks of 419,244 short tonnes.

 

CBOT July soymeal ended up US$1.20 at US$173.50 per short tonne.

 

Man Financial bought 1,400 July, R.J. O'Brien bought 700 July and the Refco division of Man Financial bought 500 July.

 

Spot cash soymeal basis bids were mixed, with a US$2 dollar gain in Kansas City and a US$1 loss in the Illinois truck bid.

 

Weekly U.S. soymeal sales of 87,300 tonnes met estimates, while U.S. soyoil export sales of 9,500 tonnes topped expectations, outweighing bearish Census April soyoil stocks of 2.751 billion pounds.

 

Moreover, soyoil found some support from hopes for increased U.S. use for biodiesel. Gains in crude oil futures tend to boost that enthusiasm, brokers said.

 

CBOT July soyoil futures ended Thursday up 1 point at 25.09 cents per pound.

 

Funds bought 2,400 lots by 12:30 p.m. EDT, while commercial buying of July soyoil by ADM and Bunge was noted.

 

Oil/meal spreads were also noted.

 

Citigroup bought 1,500 CBOT December soyoil and sold 1,500 December soymeal; JP Morgan bougtht 800 July soyoil and sold 800 July soymeal; and Fimat bought 500 December and 200 July, while selling 400 July soymeal.