December 7, 2009

 

CBOT Soy Outlook on Monday: Up 4-6 cents; buoyed by world demand

 

 

Chicago Board of Trade soybean futures are poised for a higher start to Monday's day session, buoyed by global demand and supportive influences from Asian markets.

 

CBOT soybean futures are seen starting 4 to 6 cents higher. In overnight trade, January soybeans were 6 1/4 cents higher at US$10.49 1/4, and March soybeans were 6 1/2 cents higher at US$10.57.

 

Overnight price strength is signaling a firm start for the market, with continued strong world demand the underpinning feature for futures, analysts said.

 

A rally in Chinese soy futures to a new high for the year is seen adding to the supportive tone, with technical strength another bullish feature expected to aid the market's gains.

 

However, weakness in outside markets, with a firmer U.S. dollar, lower crude oil, and precious metal futures are seen applying pressure to limit advances and speculative buying, a CBOT floor analyst said.

 

A market technician said despite Friday's lower close, soybeans still have the overall near-term technical advantage. Prices are still in a two-month-old uptrend on the daily bar chart.

 

First resistance for January soybeans is seen at Friday's high of US$10.53 3/4 and then at US$10.64 1/2. First support is seen at US$10.40 and then at Friday's low of US$10.31.

 

December soyoil deliveries totaled 380 lots. Customer accounts at Man Professional Clearing issued and stopped 216 and 239 lots respectively. The last trade date assigned was December 4. The U.S. Department of Agriculture is scheduled to release its weekly export inspections report at 11 a.m. EST, and its weekly crop progress report at 4 p.m. EST.

 

In overseas markets, soybean futures hit a fresh 2009 high on the Dalian Commodity Exchange Monday, with speculative funds driving trade amid concern over the buildup of inflationary pressures. The September soybean contract settled 1.8% up at RMB4,085 a metric tonne.

 

Crude palm oil futures on Malaysia's derivatives exchange rose by as much as 1.7% Monday but erased gains as investors liquidated positions to take profits, trade participants said. The benchmark February contract on the Bursa Malaysia Derivatives exchange ended MYR3 lower at MYR2,559 a metric tonne.