US soybean futures on the Chicago Board of Trade closed higher on Friday on a short-covering bounce before USDA's Monday crop report, spurred by a weaker dollar and strong exports, traders said. November soybeans ended 12-1/4 cents higher at $9.11-3/4 a bushel; January soy closed up 15 at $9.21.
Soymeal gained on soyoil, a reverse of Thursday's trade, with oil pressured by early weakness in crude oil. December soymeal ended $8.90 per ton higher at $271.70; December soyoil closed down 0.27 cent at 33.90 cents per lb. Spread trade was active as index funds were rolling nearby long positions into the deferreds -traders.
Commodity funds bought 2,000 soybean contracts, 1,000 soymeal and were close to even in soyoil -traders. Weaker dollar is a supportive sign for dollar-denominated commodities, making them more attractively priced to overseas buyers.
Additionally, China has been an aggressive buyer of US soybeans this season. China has purchased 6.965 million tonnes of US soybeans so far this marketing season, up from 6.026 million from same period a year ago. Midwest basis bids for soy up sharply by 12 to 16 cents as barge freight backs up and strong export demand-dealers.
Concerns increase about harvesting remaining US soybeans as weather turning cold and wet. But most of soy crop should be off the field by now -traders. Traders looking for supportive soy numbers in USDA's monthly crop report on Monday. Analysts expect USDA to lower its US soybean crop estimate to 2.919 billion bushels, from 2.938 billion in October 28 report.
A lower soy crop forecast was seen spilling over to a cut in USDA's US soy ending stocks projection to 194 million, from current outlook for 205 million. Brazil's Vegetable Oils Industry (Abiove), in its first outlook of the year, put the Brazilian 2008/09 soybean crop at a record 61.4 million tonnes. That is larger than the 59.9 million tonnes harvested last year.
Deliveries against November totalled 735 contracts, with scattered stoppers. China bought 30,000 tonnes of soyoil from South America to replenish state reserves. Thai govt to buy 150,000 tonnes palm oil to help prices. Malaysia faces an uphill task in exporting surplus palm oil due to deepening global recession and environmentalist pressure over biofuels - minister. Malaysian palm oil futures ended higher.
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