CBOT soya, products move up

18 Apr, 2004

Chicago Board of Trade soyabean ended firm on Friday on worries about No 2 global Soya producer Brazil's crop and on a recovery from Thursday's 50-cent limit-down close in nearby months, traders said.
CBOT soyabean ended up 1-1/2 to 18 cents per bushel, with May up 2 cents at $9.65 and July up 1-1/2 cents at $9.66. Commodity funds were net sellers of about 1,000 lots and commercials were light net buyers, traders said.
The recovery followed on Thursday's 50-cent lower close in the nearby months. Commodity funds reportedly sold about 25,000 lots on Thursday, halving their net long position, after sell-stops were hit when prices slipped below the psychologically key $10.00 level, brokers said.
They said the gains were sparked forecasts for Brazil's drought-stricken Rio Grande do Soul to produce 5.4 million tonnes of soyabean in 2003/04, down 43.7 percent from the previous year.
CBOT traders said the cut in RGDS production extrapolated to a total Brazilian 2003/04 soyabean crop of 50.5 million tonnes, well below the US Department of Agriculture's last forecast of 56.0 million tonnes.
On Friday's estimate followed on Thursday's low Brazilian crop estimate of 50.9 million tonnes from FNP, a private Brazilian crop analysis firm.

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