Soybean futures at the Chicago Board of Trade ended up 2 percent on Friday, lifted by the government's small US ending stocks figure and a strong rally in corn, traders said. CBOT soy closed 4 to 17 cents per bushel higher, with May up 17 at $7.50 per bushel.
July was up 15-1/2 at $7.61-3/4 and new-crop November was up 15-1/4 at $7.90-3/4. In its first 2007/08 US supply projections, USDA put US soybean ending stocks at 320 million bushels, versus the average trade estimate for 336 million bushels and far below its 2006/07 end stocks projection of 610 million bushels.
The drop in stocks reflected a smaller 2007 crop as farmers are seen planting fewer soy acres this spring and more corn.
"They find plenty of demand for soybeans and they do cut ending stock estimates to what the trade had been expecting," said Jack Scoville, analyst with The Price Futures Group in Chicago.
Additionally, if the weather stays clear in the United States Midwest over the next week, farmers may be able to plant most of their intended corn acres which means small soybean acres, traders said.
The July soybean contract broke above resistance at its 100 day moving average of $7.54 and its 50 day ma of $7.61-1/4 and the nine-day relative strength index closed at 63. US Midwest basis bids for soybeans were steady early Friday with sales quiet as farmers focus on planting crops, cash dealers said.
There were 514 May soybean deliveries overnight, with a customer of UBS Securities stopping 236. May soymeal deliveries were moderate to heavy at 207 and met by scattered stoppers. May soyoil deliveries were light at 47 lots and met by strong commercial stopping with Term taking 41.
CBOT soymeal closed 70 cents to $3.70 per ton higher, with July up $2.90 at $201.80 per ton. Soymeal was supported by the strong rally in corn and soybeans.
Soyoil rallied to new contract highs after USDA trimmed its US soyoil ending stocks over the next year to reflect increased demand. The government pegged US 2007/08 soyoil end stocks at 2.179 billion lbs, compared to 2.954 billion lbs for 2006/07.
Also, Malaysian palm oil futures closed higher overnight. Soyoil closed 0.40 to 0.80 cent per lb higher, with July up 0.67 at 34.39 cents per lb.
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