US MIDDAY: soya steady

17 Aug, 2006

Chicago Board of Trade soyabean futures were steady by Wednesday's midsession as prices stabilised after this week's slide to an 8-1/2 month low, traders said.
"It's just a consolidating market after the sharp break. The weather is favourable with rains expected for Thursday, Friday, Saturday," said one CBOT trader.
August is the prime time for soyabeans to meet their maximum yield potential as they set and fill pods this month. A turn to milder temperatures and scattered showers was improving the outlook for the US soyabean crop.
There also was talk that the recent sell-off in soyabeans was stimulating fresh export business. Soyabean values at the US Gulf and Pacific Northwest strengthened amid talk that China may have bought 5 to 7 cargoes of US soyabeans this week and was looking for more.
The Brazilian real also firmed this week, making US soyabean prices more attractive compared to South American soya than they have been this summer, traders said. September soyabeans were up 1/4 cent at $5.56-3/4 per bushel by 10:55 am CDT (1555 GMT). New-crop November was up 1/4 cent at $5.69-1/2.
Rand Financial, J.P. Morgan and Goldenberg Hehmeyer each bought 200-300 November; ADM Investor Services and FC Stone each sold 200-300 November, traders said.
CBOT soyabeans were oversold after falling about 30 cents last week amid easing concerns about the US crop. The nine-day relative strength index for November soya was at 27, within the area below 30 which is viewed as oversold territory. The soya products were also range-bound with little fresh news to stir much trade volume or volatility, traders said.
CBOT September soyameal was up 30 cents at $160.20 per ton, with the deferreds up 50 cents to down 20 cents. September soyaoil was down 0.05 cent per lb at 25.33 cents, with the back months down 0.05 to up 0.10.

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