November 22, 2008
CBOT Soy Review on Friday: Test recent lows; lack fresh support
Chicago Board of Trade soybean futures ended lower Friday, testing the bottom end of a six-week trading range, as bearish economic outlooks and a lack fresh fundamental support weighed on prices.
CBOT January soybeans finished 16 cents lower at US$8.40.
January soymeal settled US$7.30 lower at US$249.90 per short tonne. January soyoil finished 6 points higher at 31.06 cents per pound.
Futures consolidated for most of the day, chopping around attempting to find its footing following Thursday's sharp declines. However, global economic unrest, plunging corn prices and tepid buying interest opened the door for prices to drop to session lows down the stretch, analysts said.
The overnight session set the stage for losses, with prices under pressure from carryover selling from Thursday's late collapse.
Otherwise, futures had little fresh directives, with outside markets choppy. Forecasts for improved rain prospects in Argentine growing areas next week and an absence of fresh demand news coupled with a lack of buying in the face of global recession fears left futures vulnerable to extend recent declines, analysts added.
The DTN Meteorlogix weather forecast said Friday's weather models show a chance for at least some showers in the central Argentina crop-belt region during the first part of next week.
On Monday, the U.S. Department of Agriculture is scheduled to release its weekly export inspections report 11 a.m. EST and its final weekly crop progress report of the season at 4 p.m. EST.
Soy-product futures ended mixed, with soyoil managing to regain some product share on the realignment of meal/oil spreads and borrowed strength from crude oil. Soymeal dropped in unison with soybeans, garnering additional pressure from technical weakness and a lack of fresh demand news, analyst said.
January oil share ended at 38.35% and the January crush ended at 52 3/4 cents.