Chicago Board of Trade soybean futures closed firm on Friday after a choppy and range-bound session, recovering from an early technical sell-off, traders said. Soybeans were able to bounce when CBOT wheat rallied.
"The outside markets didn't help - gold and crude were down hard. Today's report didn't do anything," said one CBOT floor broker, referring to USDA's report issued before the open. March soybeans closed 1-1/2 cent higher at $7.46-1/2 per bushel. May soy ended 3/4 cent firmer at $7.59-3/4.
Soyoil also recovered late on technical buying, pressured most of the session by the $1.50 per barrel drop in crude oil. March soyoil settled 0.04 cent higher at 30.22 cents per lb, with the back months down 0.02 to up 0.15 cent. Given the increased speculative capital invested in commodities, they tend to move in tandem.
March soymeal closed 70 cents per ton higher at $216.50, with the back months up 80 cents to down 50 cents. USDA monthly crop data provided little market direction as the numbers were within expectations, traders said. The government left its 2006/07 US soybean ending stocks estimate unchanged at 595 million bushels and increased its forecast of the Brazilian soy crop by 1 million tonnes to 57 million. Both numbers were within trade expectations.
"We weren't expecting much out of them, and that's exactly what we got," one CBOT cash-connected trader. "In general, I don't see anything exciting on any of these numbers this morning." "We're back to trading what's going to happen from the standpoint of what the funds want to do, what the weather is going to do," he added.
Commodity funds bought 1,500 soybean futures and were close to even in soymeal and soyoil. Estimated volume was the lightest of the week. Soybean trade was pegged at 80,295 futures and 14,807 options. Estimated soymeal trade was 30,577 futures and 1,790 options. Soyoil volume was pegged at 23,986 futures and 3,548 options.
Overnight, there were 541 March soybean delivery lots scattered among firms. But they were met by a strong stopper, with a UBS Securities customer taking 325 contracts. March soymeal deliveries were light at 23 lots. There were 503 soyoil deliveries, but they were met by strong commercial stopping. The house account of Term Commodities took 292 lots and the ADM house stopped 126.
US Midwest basis bids at interior locations were steady to firm amid quiet sales while river bids were weaker, reflecting the drop in CIF values at the US Gulf, cash traders said. That weakness spurred fresh export business. Farmer sales were quiet.
In global news, the Argentine truck drivers' strike ended. The strike, which began earlier this week, supported prices as it paralysed grain and oilseed trade in Argentina.
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