DJ CBOT Soy Review: Lower; Consolidates Tuesday's Gains
  
   CHICAGO (Dow Jones)--Soybean futures on the Chicago Board of Trade ended
 lower Wednesday, retracing a portion of Tuesday's sharp gains amid ideas the
 advances were a little overdone, traders said. 
  
   July soybeans ended 16 cents lower at $6.96 1/4 a bushel, November soybeans
 ended 18 1/2 cents lower at $7.09 1/2, August soymeal settled $5.10 lower at
 $216.40 a short ton, and August soyoil ended 30 points lower at 25.09 cents a
 pound. 
  
   The market effectively consolidated Tuesday's gains, with the absence of any
 fresh supportive news to attract aggressive speculative buying opening the door
 for a price correction, analysts said. 
  
   Choppy two-sided action plagued futures in early action, as traders wrestled
 with supportive hot and dry near-term forecasts and extended outlooks that open
 the possibility for increased rain showers. 
  
   Less-than-expected declines in crop ratings from Tuesday's progress report
 and the realization that the critical time from soybean development does not
 occur until August allowed futures to trim prior gains. In addition, traders
 are keeping an eye on hurricane activity in the Gulf of Mexico to see whether
 the moisture can find its way to the Midwest. 
  
   Futures stayed on the defensive after the volatile midday action, with
 technically inspired selling pressing prices to session lows on the close,
 traders said. The declines accelerated down the stretch, with sell-stop orders
 triggered once the most-active November futures penetrated technical support at
 the 10-day and 20-day moving averages near the $7.14 area. 
  
   Nevertheless, futures traded inside days on technical charts maintaining a
 level of risk premium amid fears of dryness, Asian rust and insect infestation.
  
   Meteorlogix weather service's 11- to 15-day forecast covering July 16-21
 shows a weakening in an upper-level ridge that could produce strong cold-front
 passage with scattered thunderstorms early in this period. Meanwhile, shower
 activity during the next 10 days will be mainly confined to the far-western
 belt, with temperatures turning warmer during this period, Meteorlogix added. 
  
   In pit trades, Calyon Financial, RJ O'Brien and Refco each bought 300
 November, Cargill Investor Services bought 600 November, Fimat bought 500
 November, and ADM Investor Services bought 400 November. 
  
   On the sell side, Bunge Chicago sold 400 November, Rand Financial sold 1,000
 November, Cargill Investor Services and Calyon Financial each sold 300
 November, Man Financial sold 800 August and 300 November, Refco sold 500
 November, and RJ O'Brien and Tenco each sold 400 November. 
  
   Commodity funds were estimated sellers of 2,000 contracts. 
  
  
    Soy Products 
  
  
   Soy-product futures scaled back Tuesday's price spike, moving in unison with
 soybeans. Technical selling and ideas both markets' upside movement was
 overdone pinned prices in negative territory after a choppy, two-sided start to
 the day. 
  
   Otherwise, futures lacked any fresh fundamental influences to break the
 markets out of the bearish theme exerted from the soybean pit, trade sources
 said. 
  
   August oil share ended at 36.70%, and the August crush finished at 53 3/4
 cents. 
  
   In soymeal trades, Cargill bought 400 August, Fimat and Kottke each bought
 200 December. Bunge Chicago sold 300 August, Man Financial sold 400 August,
 Tenco sold 300 September. 
  
   In soyoil trades, Fimat and Refco each bought 400 December, Tenco bought 500
 September and Bunge Chicago bought 200 December. Cargill sold 300 December,
 Rand Financial, Man Financial, RJ O'Brien and Iowa Grain each sold 200
 December.