In The News - 15/10/2005
Soybean futures at the Chicago Board of Trade closed mostly higher on Friday, underpinned by supportive export and crush data, traders said.
Continued buying interest from China in U.S. soybeans also remains supportive. There was talk that China bought one to 2 cargoes of U.S. soybeans, traders said.
But an expected active harvest weekend loomed over the market, keeping prices in check.
November soy <SX5> closed 1-1/4 cent higher at $5.89-1/2 per bushel. The deferred months settled 2 cents higher to down 1-1/2 cent. Traders eyed $6 as a resistance point in November soybeans and support at this week's low of $5.54.
Funds were about even on the day. There was a combination of commercial hedge pressure and pricing, traders said.
The U.S. Agriculture Department on Friday said U.S. soy export sales were 684,900 tonnes, higher than traders expected at 400,000 to 600,000 tonnes. Most of the beans, or 517,800 tonnes, went to the top global soy buyer, China.
USDA export data was released one day late due to the Columbus Day holiday this week.
The National Oilseed Processors Association reported on Friday that U.S. processors crushed 127.1 million bushels of soybeans in September, which was above trade estimates for 122 million to 124 million bushels.
Supportive to the products was a 38 million lb reduction in U.S. soyoil stocks in a month's time.
Clear weather was forecast through the weekend with rain moving in next week, said Meteorlogix weather on Friday.
Midwest cash basis bids for soybeans were unchanged early Friday amid steady harvest sales, dealers said.
Soymeal closed lower on a technical setback and soft cash markets. Soyoil rebound late amid commercial buying, traders said.
December soymeal <SMZ5> was down $1.10 at $176.50, with the deferreds 20 cents to $1.20 lower. December soyoil <BOV5> closed 0.14 cent higher at 24.03 cents per lb, with the backs up 0.05 to 0.15.
The October contract expired quietly -- soymeal <SMV5> up 30 cents at $175.30 and soyoil <BOV5> down 0.35 at 23.45.
There were 240 deliveries on the October soymeal contract, with a customer of Refco Investor Services issuing 225 lots. CBOT traders said they were commercial deliveries from Cargill. The key stopper was a Prudential customer taking 240 lots.
Registrations with the CBOT increased to 476 lots from the previous 251.
Deliveries on the October soyoil contract totaled 76 lots. There was strong commercial stopping with the ADM house account taking 76 lots. A Prudential customer issued all of the soyoil.
Soyoil registrations with the CBOT were unchanged at 4,519 lots.
Weekly export sales data was viewed neutral to bearish for soyoil and supportive for soymeal.
USDA reported U.S. soymeal for last week at 177,700 tonnes, above estimates for 50,000 to 110,000 tonnes.
U.S. soyoil sales were 3,200 tonnes, compared with estimates for 3,000 to 10,000 tonnes.
Malaysian palm oil futures closed mostly flat as players limited their exposure ahead of export data due next week, traders said.
Volume was moderate. In soybeans, an estimated 78,227 futures and 25,931 options traded. Soymeal trade was pegged at 23,299 futures and 2,551 options. Estimated soyoil volume was 22,036 futures and 1,709 options.
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