Opening Grain News

By Andrew Johnson Jr.
Of DOW JONES NEWSWIRES

CHICAGO (Dow Jones)–Chicago Board of Trade soybean futures are poised for a
lower start to Friday’s day session on pre-weekend positioning in the absence
of fresh fundamental news.

CBOT soybeans are seen opening the day session 2 cents to 3 cents lower.

A weak undertone from outside, macro market influences are expected to
attract selling following the market’s run to over three-month highs this week,
analysts said. A firmer U.S. dollar and lower crude oil and metal futures
weighed on prices in overnight trade.

Overnight, CBOT May soybeans were 1 3/4 cents lower at $10.02 1/2 a bushel,
July soybeans were 1 3/4 cents lower at $10.13 1/4, and November soybeans were
2 3/4 cents lower at $9.82 1/4.

Meanwhile, the planting of U.S. soybeans remains active through the U.S.
Delta, which should allow for a smooth transition of supply from old crop to
new crop marketing years, according to an AgResource Company market note.

The swift pace of southern U.S. soybean seedings will serve as a buffer to
tight old crop supplies and reduce the tightness of supplies baring any growing
session problems. A record South American harvest and expectations for large
plantings in the U.S. are bearish for the longer term.

However, strong underlying demand is expected to limit near term downside
movement. Strong demand from China and from domestic processors amid light
farmer selling is seen buoying prices.

Bullish technical momentum is expected to underpin prices as well, with
short covering and fresh fund buying expected to continue with prices holding
above technical chart support levels.