Chicago Board of Trade soyabeans set a 15-1/2-year top and meal a near 7-year high on Tuesday on worries about South American crop losses amid strong global demand and tight US supplies, brokers said.
CBOT soyabeans were up 2 cents to 17-3/4 cents per bushel, with May up 15-3/4 cents at $9.94, after setting a new high of $9.95-3/4.
Commercial buying was noted in soyabeans, traders said. Refco Inc bought 1,500 July and 500 May, Produce Grain bought 1,000 July, ADM Investor Services bought 300 July and 500 May, and R.J. O'Brien bought at least 200 July, traders said.
CBOT soyameal was up $4.50 to $7.70 per ton, with May up $6.90 at $304.70, after making a new high of $305.00 per ton.
Shatkin, Arbor Trading bought at least 1,000 July, Refco Inc bought 800 May, ADM Investor Services bought at least 200 May and 300 July, brokers said.
Cash US soyameal basis offers were firm on Tuesday, and buying interest quiet, dealers said.
Some noted crush reductions were being considered in response to the climbing price for soyabeans.
US crush margins have been slipping, and some dealers said the crushing pace might be slowed earlier than usual this spring to ration supplies.
US crush plants generally slow crush and/or take maintenance downtimes in the spring.
CBOT soyaoil was up 0.15 cent per lb to down 0.25 cent, with May up 0.12 cent at 33.87 cents. A lower close in rival Malaysian palm oil futures limited gains in soyaoil futures, traders said.
Expectations that South American 2003/04 soyabean production estimates would continued to drop, following crop disease and poor growing weather, and worries about tight US supplies again spurred buying, soya brokers said.
Brazilian crop analysts Celeres on Monday estimated the 2003/04 Brazilian soyabean crop at 56.2 million tonnes, in the range of other analysts' estimates but well below the US Department of Agriculture's latest estimate of 59.50 million tonnes.
In No 3 global soya producer Argentina, the private Buenos Aires Grain Exchange estimated on Monday a 2003/04 soyabean crop at 34.5 million tonnes, below last year's record 35.2 million tonnes and below USDA's last estimate of 36.5 million.
Traders had expected record harvests from both countries this spring, just in time to fill surging global and US demand.
Instead, traders called for higher prices to ration demand amid the building losses in production.
Worries that forecasts for rains in Brazil's center-west through March 25, and a strike by Brazilian soya export inspectors, would slow exports of newly harvested soyabeans also underpinned CBOT soya, they said.
Support was also seen from top global soya importer China's declaration of a victory over the recent deadly bird flu outbreak and a sharp overnight rally in Dalian soyameal futures, traders said.
They had worried earlier this winter that the spread of the deadly Asian bird flu would cut chicken consumption and, therefore, livestock feed demand.
Cash US soyabean basis bids were mixed on Tuesday, while Gulf CIF midday soya basis bids firmed, brokers said.
Overnight US soya export business was quiet, while in global soya trade, South Korea bought 15,000 tonnes of Indian soyameal.
Comments
Comments are closed.