Soyabeans higher

The Chicago Board of Trade soyabean futures market rose on Monday on follow-through buying from Friday in response to the government's lower-than-expected US soya acreage figure, traders said. Buying picked up, when Midwest weather forecasts turned a little drier, with some forecasters expecting 5 percent less rain, or 55 percent coverage, mid-week.
"It doesn't take much of that discussion at all to get beans going. They don't want to take any rain away, with that low acreage base," said Dan Cekander, a Fimat USA analyst. July soyabeans closed 15 cents per bushel higher at $8.65 and November ended 16 up at $8.97-3/4. The other months were 11 to 17-1/2 higher. The products were also firm on follow-through. Meal gained on oil amid meal/oil spreading and speculative buying by commodity funds in meal.
July soyameal settled $6.60 per ton higher at $235.80, with the deferred up $1.80 to $7.70. The soyaoil market was up 0.02 to 0.19 cent per lb., with July up 0.10 cent at 36.73 cents. Commodity funds bought 5,000 soyabean contracts, 3,500 soyameal and 1,000 soyaoil, traders said. The US Agriculture Department estimated on Friday that US farmers seeded 64.1 million soya acres, the lowest plantings since 1995.
Weekly export inspections data did not give the market much to go on, coming in at the low-end of estimates. USDA reported that 7.2 million bushels of soyabeans were inspected for export, compared with estimates for 7 million to 11 million. Mild weather over the past week eased worries about crop stress but western Iowa, Nebraska and Ohio were dry, a DTN Meteorlogix forecaster said.
As expected, the government raised its rating of the soyabean crop by 2 points on Monday's weekly progress update, with 68 percent of it in good to excellent condition. While futures markets were strong again on Monday, US cash markets were weakening amid ample nearby supplies and the rise in futures. Heavy overnight deliveries, especially in soyabeans and soyaoil, were an indication of the weakness in cash, traders said. There were 2,505 July soyabean deliveries, and a Man customer was the main stopper, taking 1,057.
In soyameal, there were 70 deliveries against the July contract. They were met by strong commercial stopping, with a J.P. Morgan customer taking 49. In soyaoil, their 1,558 July deliveries, which did scattered stoppers, meet.
Trade data from the Commodity Futures Trading Commission on Friday showed large speculators cut their net long positions in CBOT soyabeans, soyaoil and soyameal in the week that ended June 26. Big cuts came in soyabeans and soyaoil, down about 16,000 and 19,000 lots, respectively, according to the CFTC supplemental report.