US soybean futures on the Chicago Board of Trade rose to a three-week high on Monday, lifted by strong domestic cash markets as a slow farmer selling pace was not keeping pace with an active export program out the Gulf, traders said. China, the world's top soy buyer, remains very interested in US soybeans.
Added to that was China's decision to triple its state corn reserves, which led to speculation that Beijing may increase purchases of soybeans. Then Argentina, the world's third largest soy exporter, said it cut taxes on vegetables and fresh fruit exports by 50 percent, expanded tax reductions on corn and wheat exports, but kept levies on the country's biggest agriculture export, soy, unchanged.
January soybeans ended 18-1-4 cents higher at $8.86-1-2 a bushel. March soy closed 18 up at $8.90-1-2. January soymeal settled $8 higher at $275.50 per ton; January soyoil closed 0.34 cent up at 30.94 cents per lb. Commodity funds bought 3,000 soybean contracts, 2,000 soymeal and 1,000 soyoil traders.
Concerns mount about dry conditions in South America, especially as January approaches traders. Southern Brazilian state of Rio Grande do Sul needs moisture. Light showers expected on Tuesday-Wednesday, turning dry Thursday to Sunday DTN Meteorlogix.
Central and western Argentine crop areas received 0.3 to 1.0 inch of rain, locally heavier, over the weekend. But the main growing areas had the lightest amounts. Chance for more rain in Argentina this week appears limited DTN Meteorlogix.
USDA said that 27.804 million bushels of soybeans were inspected for export last week, below estimates for 30 million to 35 million. Weekly trade date for the Commodity Futures Trading Commission showed large speculators slightly expanded their net long position in CBOT soybeans, up 2,600 contracts, in the week ended December 16, by covering shorts.
In soymeal, large specs extended their net long position by roughly 1,400 contracts. For soyoil, large speculators trimmed their net short position by nearly 7,000 contracts. Midwest basis bids for soybeans were held firm at interior points while river bids weaker as barge freight rises as ice on Illinois River slowing traffic dealers.
US Census Bureau to issue is monthly crush data on Tuesday. On average, analysts expect bureau to show a November crush near 146 million bushels, versus 156.3 million in November 2008.
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