CBOT Review: Soybeans down amid profit taking

Soybean futures finished weaker on Thursday, undermined by profit taking following large gains seen in the previous three sessions, market watchers said.

Favourable weather for the ongoing development of Brazil’s soybean crop added to the bearish tone. According to the USDA, Brazil is expected to produce 89 million bushels of soybeans in 2013/14, which would be a record.

Spillover from the losses seen in the soymeal market added to the downward pressure, as did concerns that China might have overbought soybeans and could cancel some shipments in the near-term.

However, gains were limited by strong demand for US supplies and good soybean crush numbers. According to the National Oilseed Processors Association, US soybean crushing was up for the third consecutive month in December to a rate of 165.38 million bushels.

CBOT Soybean Futures Prices (US$ per bushel) – 16 January
Contract Month Closing Price Previous Close Daily Change % Daily Change Daily High Daily Low
Mar 13.1500  13.1800  -0.0300 -0.228%  13.3050 13.1100
May 12.9625  12.9750  -0.0125 -0.096%  13.0950 12.9200

 

SOYOIL futures were stronger on Thursday, underpinned by spreading against soymeal, brokers said.

CBOT Soyoil Futures Prices (US cents per pound) – 16 January
Contract Month Closing Price Previous Close Daily Change % Daily Change Daily High Daily Low
Mar  38.05   37.99     +0.06   +0.158%  38.09  37.62
May  38.38   38.33     +0.05   +0.130%  38.42  37.97

 

SOYMEAL futures were lower on Thursday, amid ideas that the market has been overbought in recent sessions, analysts said.

CBOT Soymeal Futures Prices (US$ per hundredweight) – 16 January
Contract Month Closing Price Previous Close Daily Change % Daily Change Daily High Daily Low
Mar 432.00 434.50      -2.50  -0.575% 440.20 430.50
May 418.10 419.10      -1.00  -0.239% 424.80 416.20

 

CORN futures were slightly higher on Thursday, underpinned by strong US export data, industry watchers said.

According to the USDA, US exporters sold 821,000 metric tonnes of corn during the week ended January 9, which beat trade expectations.

Spillover from the gains seen in the wheat market were also supportive, as was last Friday’s bullish USDA supply and demand report.

However, ideas that corn use in the US feed market will decline in 2014 limited any further gains, as did reports that China rejected more shipments of DDGS.

CBOT Corn Futures Prices (US$ per bushel) – 16 January
Contract Month Closing Price Previous Close Daily Change % Daily Change Daily High Daily Low
Mar 4.2800 4.2575  +0.0225  +0.528%  4.3000  4.2500
May 4.3550 4.3350  +0.0200  +0.461%  4.3775  4.3275

 

WHEAT futures closed stronger on Thursday, underpinned by ideas that the market was oversold, investors said.

A smaller-than-expected US winter wheat planted area was bullish, as was strong export demand for the US product, brokers said.

Reports that Egypt purchased US wheat earlier this week for the first time since February 2013 added to the upward push seen in prices. Egypt is the world’s largest importer of wheat.

However, expectations of large global carryover stocks limited any further gains.

CBOT Wheat Futures Prices (US$ per bushel) –  16 January
Contract

Month

Closing Price Previous Close Daily Change % Daily Change Daily High Daily Low
Mar  5.7275  5.6775  +0.0500   +0.881%  5.7375  5.6400
May  5.7975  5.7475  +0.0500   +0.870%  5.8075  5.7100

 

RICE futures closed slightly lower on Thursday, as prices continued to trade in a narrow range, participants said.

Some weakness came from higher-than-expected world ending stocks, according to the USDA.

CBOT Rice Futures Prices (US$ per hundredweight) – 16 January
Contract Month Closing Price Previous Close Daily Change % Daily Change Daily High Daily Low
Mar 15.580  15.640   -0.060 -0.384%  15.635 15.580
May 15.620  15.675   -0.055 -0.351%  15.635 15.580

— Brandon Logan, Commodity News Service Canada, Winnipeg

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