November 1, 2005

 

CBOT Soy Review on Monday: Ends lower; soyoil down as energy sags

 

 

Soybean futures on the Chicago Board of Trade ended lower Monday after good weekend rains in key competitor Brazil's soy belt and on selling in soyoil as U.S. crude oil futures ended below US$60 per barrel for the first time in three months, brokers said.

 

Buying interest in CBOT soyoil, and spreading of CBOT soyoil/soymeal, deepened this fall on ideas of greater use of the vegetable oil to make biodiesel.

 

"Besides people exciting long oil/short meal spreads, I don't see much," said Dan Basse of Ag Resources.

 

November soybeans ended 1/4 cent lower at US$5.64 3/4, January soybeans finished 1/1/2 cents lower at US$5.76, December soymeal settled 90 cents higher at US$169.70 a short tonne, and December soyoil ended 47 points lower at 22.86 cent a pound.

 

Weekly U.S. soybean export inspections, at 40.062 million bushels, were at the high end of traders' estimates.

 

Overnight U.S. soybean export sales were quiet, while cash basis bids firmed early Monday.

 

By midday, cash soybean sources were reporting increased U.S. farmer soy sales, and primary interior terminals surveyed by the CBOT reported aggregate corn/soybean receipts of nearly 1.3 million bushels Monday, up 56% from week-ago levels.

 

 

Soy Products

 

Soymeal futures ended mixed Monday as signs of good domestic demand were offset by worries about the spread of a deadly strain of bird flu across Asia and EurAsia, cash sources said.

 

In soymeal trades, commodity funds bought about 800 lots, led by Calyon Financial and Cargill Investor Services. Commercial ADM Investor Services bought 200 December while Cargill Inc. was seen on both sides of the market.

 

Soyoil futures closed lower Monday, with bellwether December dipping to a one-month low of 22.85 cents per pound as energy futures sagged on unseasonably warm U.S. autumn weather.

 

December oil share ended at 40.25% and the November/December crush was 62 1/2.

 

In soyoil trades, commodity funds sold about 2,000 lots while commercials bought about 2,000 lots, brokers said. Cargill Inc. and Bunge Grain each bought 400 to 500 December while Iowa Grain and Calyon Financial each sold 400 December.