Soyabean futures on the Chicago Board of Trade closer higher on Friday amid weather uncertainty and slipover strength from the soyameal market, traders said.
"There's been some worries about this summer turning out like 2003 when it was dry in August," said Don Rose, analyst with US Commodities. Beneficial rains were expected to move through the US Midwest over the next five to six days and hit some of the drier areas of the belt.
But a high-pressure ridge was forecast to edge its way into the Midwest later next week, bringing hotter, drier conditions, a DTN Meteorlogix forecaster said. If the rains come it would help boost soya yields as the crop is setting and fill pods this month. Soyabeans also saw slipover buying from soyameal, with meal/oil spreading helping lift meal.
"Meal relative to oil is pretty cheap. There's been steady demand for meal in both the domestic and export sectors. For soyabean oil, there's just abundant inventories," said Terry Really, analyst with Citicorp.
August soyabeans ended 8 cents higher at $8.39 per bushel. New-crop November closed 6-1/2 firmer at $8.61. The soyameal market closed mostly higher up $4.30 per ton higher to down $1; August meal was up $4.30 at $222.20.
Soyaoil settled 0.02 cent to 0.15 cent per lb. lower, with August down 0.08 at 37.35. Commodity funds bought 3,000 soyabean contracts, 2,000 soyameal and sold 500 soyaoil, traders said.
Private analyst Informal Economics updated its US crop production estimates on Friday. The general consensus among traders was that Informer's 2007 US soya crop estimate of 2.7 billion bushels, with a yield of 42.7 bushels per acre was near expectations.
The firm lowered its estimate from last month but it was above USA's July forecast of 2.625 billion bushels and average yield of 41.5 bpa. A strong wheat market continues to underpin soyabeans, traders said. Given the shrinking number of US soya acres as farmers plant more corn and wheat, soya climbs to keep pace with the grains.
Wheat has stayed strong this week, given a rain-delayed harvest in Europe and a smaller western Canadian crop estimate. Spot soyabean bases bids remain historically weak but were firming amid quiet country sales, dealers said.
The weakness in the cash market was underscored by another round of heavy August deliveries. There were 2,058 lots delivered on the August as Man Financial customers issued 1,028 and stopped 1,123. August soyaoil deliveries were large, reaching 1,811 lots and were met by scattered stoppers. No soyameal deliveries were posted.
Comments
Comments are closed.