May 27, 2006

 

CBOT Soy Review on Friday: Mixed on pre-holiday trade; soyoil up

 

 

Chicago Board of Trade soybean futures ended mixed Friday on late speculative positioning ahead of the extended Memorial Day holiday weekend after early gains following a slight rally in soyoil futures, brokers said.

 

U.S. futures exchanges will be closed Monday in observance of Memorial Day.

 

Some U.S. weather forecasts called for good rains early next week in the western U.S. Midwest, with scattered rains later in the week in the southern and eastern Midwest, a favorable forecast for early U.S. soybean growth, they said.

 

"There's some signs of ridging in the 11- to 15-day forecasts, but that is too far out to hold a position over the long weekend," one broker said.

 

Early gains followed a rally in soyoil on ideas of growing U.S. biodiesel usage amid rallying crude oil futures.

 

CBOT July soybeans ended down 1 3/4 cents at US$5.82 1/2 per bushel and new-crop November closed down 3/4 cent at US$6.08.

 

Commodity funds sold 3,500 soybean futures contracts by 1330 EDT, brokers said.

 

Man Financial sold 1,500 July and 800 November, while Rand Financial, UBS Securities, Calyon Financial and Goldenberg Hehmeyer each sold 500 July.

 

Commercials were light buyers. Term Commodities bought 300 November, ADM Investor Services traded 100 July and FC Stonnee bought 200 November, brokers said.

 

In spread trade, R.J. O'Brien spread 800 July/November while JP Morgan and the Refco division of Man Financial each spread 400 July/November, they added.

 

Spot midday Gulf soy barge bids rose 1 cent while interior soy basis bids were mostly steady to firm, cash sources said.

 

 

SOY PRODUCTS

 

CBOT soymeal ended mixed Friday as funds bought 2,500 lots by 1330 EDT before late speculative position-evening, and on firm cash soymeal basis offers in the western U.S. Corn Belt, brokers said.

 

CBOT July soymeal ended down 20 cents at US$173.30 per tonne.

 

Fimat bought 900 July, JP Morgan bought 600 July, O'Connor and Co. bought 400 July and Bunge Grain sold 300 July, brokers said.

 

CBOT soyoil futures ended firm Friday but well off the session's highs, on light commercial and fund buying ahead of the holiday weekend and following gains in spot crude oil futures.

 

CBOT July soyoil closed up 2 points at 25.11 cents per pound.

 

Commercials were light buyers and funds bought 1,500 CBOT soyoil by 1:30 p.m. EDT.

 

ADM Investor Services bought 400 July, JP Morgan bought 500 July and Fimat bought 200 July, brokers said.

 

Produce Grain spread 400 July/December while Prudential Financial and Rand Financial each spread 200 July/December.