August 26, 2008

 

CBOT Soy Review on Monday: Rally sustained as weather fears dominate

 

 

Chicago Board of Trade soybean futures retained gains in Monday trading as dryness remains an immediate concern for crop condition, closely followed by fears of an early killing frost.

 

September soybeans settled 18 1/4 cents higher at US$13.39 1/4 a bushel. The most actively traded November soybean contract ended 20 cents higher at US$13.47 but down from the day's high of US$13.68.

 

December soymeal settled US$5.80 higher at US$365.80 per short tonne. December soyoil added 32 points to close at 55.25 cents per pound.

 

"Buying was light, without much to push the trade in either direction," a CBOT floor trader said.

 

But, he added, "cooler weather is also a factor. It dipped into the 30s in parts of the north Corn Belt this morning. It's scary for it to be that cold this early."

 

Temperatures dipped in the Corn Belt Monday morning, getting as low as 32 degrees in Hibbing, Minn., which doesn't usually hit that level until Sept. 15, said Cropcast weather.

 

"However, this does not appear to be a sign of any imminent frost threats that actually threaten crop areas in the Midwest, the private forecasting firm adds.

 

"The forecast for much of the next 2 weeks is warmer than normal in the corn and soybean belt, with no frost threats seen through September 8. At this point, we still see an above average risk for an earlier than average frost this season, but we'll have to rely on the forecast models to give us any hints regarding the timing of any events that might develop."

 

Funds bought an estimated 2,000 corn contracts.

 

 

SOY PRODUCTS

 

Soy-product futures closed higher Monday, following gains in soybeans.

 

December oil share ended at 43.03% and the November/December crush ended at 65 1/2 cents.

 

Speculative funds bought an estimated 1,000 contracts in both soymeal and soyoil.