August 23, 2008

 

CBOT Soy Review on Friday: Soybeans slip as dollar strengthens

 

 

Chicago Board of Trade soybean futures closed lower Friday, driven by gains in the U.S. dollar, weaker crude oil and profit-taking.

 

September soybeans settled 20 cents lower at US$13.21 a bushel. The most actively traded November soybean contract ended 21 cents lower at US$13.21.

 

December soymeal settled US$1.30 higher at US$360.30 per short tonne. December soyoil lost 142 points to 54.93 cents per pound.

 

The dollar strengthened as crude oil sustained losses of more than US$6 a barrel.

 

Despite a market-supporting Professional Farmers of America crop report that predicted smaller corn and soybean harvests than the most recent U.S. Department of Agriculture estimates, the market was due to correct from the week's rally, said Nathan Mangold, a broker with Advance Trading. But, he added, bullish fundamentals will provide strong support during these short-term market breaks.

 

The Pro Farmer report said the soybean harvest this autumn would total 2.93 billion bushels, 1.46% below the USDA's current estimate on a 2% margin of error.

 

The group said yield would total 39.95 bushels per acre, compared with the USDA's yield estimate of 40.5.

 

Rain is expected in the western Corn Belt, but much lighter totals, or no rain, are expected in the central and eastern portions of the region, according to T-Storm Weather.

 

"The bottom line is that rain through this weekend will not fully offset August dryness deficits, and it is likely that more rain will still be desired," Mike Tannura, T-Storm Weather president and meteorologist.

 

"The next rain chance for the Corn Belt develops during the middle and end of next week with highest chances focused on the Plains and western Corn Belt," he said. "The remnants of Fay should remain just east of soybeans in the Delta, though up to 2 inches is possible for its soybeans - not enough to induce flooding. Its remnants should stay south of the Corn Belt."

 

Funds sold an estimated 3,000 contracts.

 

 

SOY PRODUCTS

 

Soy-product futures closed mixed Friday.

 

December oil share ended at 43.28%, and the November/December crush ended at 69 1/4 cents.

 

Video >

Follow Us

FacebookTwitterLinkedIn