US soybean futures on the Chicago Board of Trade rallied to a seven-week top as worries about dryness in South America spurred technical buying, traders said. Higher crude oil also supportive. January soybeans ended 36 cents higher at $9.51-3/4 a bushel, holding above its 10-, 20- and 50-day moving averages.
January rose to $9.63 - the highest price for spot contract since early-November. Soymeal was also technically strong, a trend that began in early December. Higher crude spurred buying in soyoil. January soymeal closed up $9.80 per ton at $297.70 - busting through its 100-day moving average of $293.90.
January soyoil ended 1.51 cent per lb higher at 32.82 cents. Funds bought 2,500 soybean contracts, 1,000 soymeal and 2,000 soyoil. But volume was light after the Christmas holiday. Crude oil was up more than $2, breaking through $37 per barrel after the United Arab Emirates joined Saudi Arabia in deepening oil supply curbs to comply with Opec's biggest-ever output cut last week.
Grains and oilseeds tend to track crude oil as they are the main feedstocks to produce US biofuels. Next chance of some decent showers for central Argentina, third largest soy producer, will be the middle of next week. Maybe 0.25 to 1.0 inch, locally heavier - DTN Meteorlogix forecaster.
Those rains expected to move in southern Brazil - soy states of Rio Grande do Sul and Parana - next Friday/Saturday. But western Rio Grande do Sul, which is the driest, was not likely to see much moisture -DTN Meteorlogix forecaster. Brazil is the No 2 soy exporter and producer behind the US Weekly export sales were viewed market neutral for soybeans and soyoil, coming in near expectations, but soymeal sales were bigger than expected.
USDA said soybean export sales were 590,900 tonnes (584,800 tonnes for 2008/09). Analysts expected export sales between 500,000 and 700,000 tonnes. USDA said soymeal export sales were 145,700 tonnes (all for 2008/09). Analysts estimated soymeal export sales between 50,000 and 100,000 tonnes. USDA said soyoil export sales were 5,400 tonnes (all for 2008/09). Analysts estimated soyoil export sales between 5,000 and 10,000 tonnes.
Weekly trade data from the Commodity Futures Trading Commission to be issued on Monday, delayed one business day due to the Christmas holiday. CBOT soy rally triggered spot and deferred soybean sales, as farmers attracted to $9 and above. Firm domestic cash markets had supported futures -dealers.
Chinese crushers could slow down purchases of US soybeans in coming weeks amid strict quality checks on imports. Malaysian palm oil higher overnight, supported by strong exports. Malaysian palm oil exports for December 1-25 rose 24 percent to over 1.3 million tonnes.
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