US soybean futures on the Chicago Board of Trade rose on Thursday on a bounce from this week's sell-off, traders said. With the dollar falling to a record low, the rally in New York gold to a new top of $1,000 an ounce in the April contract and the rise in the New York crude oil to $111 per barrel were buy signals for CBOT commodities.
"It seems to be a delayed reaction to recent weakness in the dollar which continues today, the strength we've seen in petroleum oil prices," said Anne Frick, analyst with Prudential Financial. Investors remain attracted to commodities, looking for markets to hedge themselves against inflationary times.
March soybeans, which expire on Friday, ended 8 cents up at $13.87 per bushel. May closed 7-3/4 cents higher at $14.02-3/4 and new-crop November ended 3-1/4 higher at $13.20-1/2.
The products also finished higher. March soyoil settled up 0.45 cent at 62.10 cents per lb and May was up 0.32 cent at 62.56 cents. In soymeal, March ended $7.50 per ton higher at $353 and May up $5.50 at $356. Meal got an extra lift from commercial pricing as Cargill, Bunge and ADM net bought at least 1,000 soymeal contracts, traders said.
Commodity funds bought about 2,000 contracts each in soybeans, soymeal and soyoil. Strong weekly export sales data for the products was supportive and soybean sales came in near the high end of expectations. USDA reported that 381,500 tonnes of soy sold for export last week (257,600 tonnes were old-crop). Traders expected exports for 250,000 to 400,000.
US soymeal export sales were 149,800 tonnes, (147,800 tonnes old-crop), exceeding trade estimates for 25,000 to 75,000. Soyoil export sales were also hefty at 29,100 tonnes, all old-crop. That compared with estimates for 5,000 to 15,000.
There was some late supportive moves stemming from soybean options when 200 November $35 call options traded. However, MF Global's big option purchase of 10,000 November $10 puts weighed on prices. Traders were awaiting February industry crush data to be released on Friday and analytical firm Informa Economics updated planting estimates.
Analysts expect the National Oilseed Processors Association to report a monthly crush near 140.2 million bushels, down from a January crush of 152.4 million. Malaysian palm oil futures rose nearly 3 percent overnight amid Beijing's plans to increase the amount of cooking oil held in state food reserves, traders said.
Crop weather in South America is mostly favourable for late maturing soybeans and harvest efforts. However, farmers in northern Brazil continue to struggle with rains, which are delaying harvest, said DTN Meteorlogix weather.
Spot soybean Midwest basis bids were tumbling in the western belt as dealers were discouraging sales given the high cost of financing inventories, cash dealers said. Farmer sales were quiet.
Overnight March deliveries were on the heavier side. In soybeans, 689 lots were posted, with a Man customer taking 363. March soymeal deliveries reached 613 contracts and a Man customer took 383 contracts. March soyoil deliveries were 730 contracts, with signs of a strong stopper with a Newedge customer stopping 524 contracts.
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