US soybean futures on the Chicago Board of Trade rallied on Thursday as powerful storms moving across the Midwest were causing crop damage and forcing soy processors to close, traders said. CBOT soymeal hit a 35-year high in the spot contract of $405.80 - the highest price for soymeal since June of 1973, when it hit $451 per ton, according to the Commodity Research Bureau data.
July soybeans ended up 20 cents at $15.36-1/2. New-crop November soy closed up 3-1/2 at $15.12-1/2. Funds bought 5,000 lots. July soymeal settled up $3.70 per ton at $402.20 per ton. Funds bought 2,000 lots. July soyoil ended up 1.20 cent at 66.20 cents per lb. A firm close in crude oil added support.
Crop specialists were trying to access how many corn and soybean acres were being affected by the heavy rains. Strong demand for US soymeal remained a supportive feature as meal sales out of Argentina, the top exporter, have been disrupted due to the conflict between farmers and the government over a soy export tax. July soymeal soared as nearby supplies were getting tighter after some Midwest processors closed plants due to weather-related problems. Strong weekly export sales supportive.
Trading limits in soybeans revert back to 70 cents from $1.05 per bushel as the market did not close limit-up or limit-down. Speculative margins to trade soybean futures increase to $4,725 per contract from $4,050, beginning Thursday night. Weekly export sales were strong for soymeal and soyoil, disappointing for soybeans.
USDA said soybean export sales last week were 300,600 tonnes (272,000 tonnes old crop), near the low end of estimates for 300,000 to 500,000 tonnes. USDA said soymeal export sales last week were 238,000 tonnes (153,600 tonnes old crop), above estimates for 100,000 to 150,000 tonnes.
USDA said soyoil export sales last week were 15,100 tonnes (old crop), above estimates for 5,000 to 10,000 tonnes. Continued wet in western Midwest, drier weather possible in eastern Midwest. Flood conditions close locks and dams on Mississippi River; more closures expected. Midwest spot basis bids for soybeans were mixed after scattered farmer sales this week, dealers said.
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