Chicago Board of Trade soyabean futures surged to a two-week high on Friday, climbing about 4 percent on USDA's smaller-than-expected US soya supply forecast for the 2007/08 and 2008/09 marketing years, traders said. USDA pegged 2007/08 soyabean-ending stocks at 145 million bushels, down 15 million bushels from its April forecast.
USDA estimated 2008/09 end stocks at 185 million bushels. "The only surprise is to see the beans as tight as they are, at 185 million bushels, given that production is up 20 percent," said Joe Victor, analyst with Allendale Inc.
USDA put 2008/09 US soyameal end stocks at 300,000 tons, even with its 2007/08 forecast. US 2008/09 soyabean oil end stocks were seen at 2.679 billion lbs, down from its 2007/08 forecast of 2.792 billion. May soyabeans ended 51-1/4 cents higher at $13.49-1/2 per bushel, July up 48 at $13.58. New-crop November soya was up 58 at $13.03-3/4.
May soyameal closed $3.30 per ton higher at $333.10. May soyaoil ended 2.45 cent per lb up at 61.53 cents. The contracts of October 2008 forward closed up the 2.5-cent limit, getting an extra boost for the rally in crude oil to an-all time high above $126 per barrel.
CME Group said on its web site that soyaoil limits stay at 2.5 cent per lb for Monday trade. Volume was moderate. In soyabeans, an estimated 110,256 futures and 23,698 options. Estimated soyameal trade was 43,073 futures and 2,039 options. Soyaoil volume was pegged at 49,731 futures and 1,290.
Commodity funds bought 3,000 soyabean contracts, 1,000 soyameal and 3,500 soyaoil, traders said. A new wave of Argentine protests was supportive. But the strike was expected to be short-lived and there were reports that processors had adequate soyabean supplies to meet nearby crushing demands.
US Midwest spot soyabean basis bids were steady to weaker late on Friday as new-crop sales picked up sparked by the rally in CBOT markets, dealers said. In the overnight delivery market, there were no May soyabean postings, 409 soyameal and 426 soyaoil. Malaysian palm oil futures closed higher. Dalian soyabeans, soyameal and soyaoil were mostly higher overnight.
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