US soyabean futures on the Chicago Board of Trade soared to a fresh nine-month high on Thursday amid tight cash bean supplies with the red-hot soyameal market leading the charge to close 3.5 percent higher, traders said. July soyameal closed up $14.60 at $428 per ton, after rallying the $20 limit to $433.40, a 10-1/2 month high.
The rally came on the heels of USDA June monthly crop report that projected US soyabean stocks to reach a 32-year low of 110 million bushels by end of marketing year August 31. Soya processors have to pay up for spot beans to meet soyameal commitments, forcing them to raise their meal offers. Old-crop July led the soyabean market, ending up 21 cents, or 1.7 percent at $12.67 a bushel. New-crop November soyabeans settled up 10-1/2 at $10.89-3/4. There was talk that South American commercial firms were bull spreading soyabeans (July-November) to offset short hedges.
US commercial firms have rolled their spot soyabean hedges to August and November due to the volatility in July. The July-November spread traded at a new high of $1.93-3/4 before settling at $1.77-1/4. Soyaoil was the weakest leg of the complex pressed by big stocks and meal-oil spreading, brushing off the strength in crude oil.July soyaoil ended down 0.41 cent at 38.20 cents per lb.
Commodity funds bought an estimated 5,000 soyabean contracts, 2,000 soyameal and sold 1,000 soyaoil-traders. USDA said export sales of US soya last week 219,100 tonnes (minus 61,000 old-crop), within estimates for 200,000 to 400,000 tonnes.
Net reductions for old-crop sales included 55,000 tonnes cancelled by China and 73,500 tonnes canceled by unknown. China also canceled 8,000 tonnes new-crop but unknown destination bought 226,500 tonnes. USDA said export sales of US soyameal last week 120,300 tonnes (70,200 tonnes old-crop), within estimates for 75,000 to 150,000 tonnes.
USDA reported US soyaoil export sales last week at 10,300 tonnes (6,800 tonnes old-crop), versus estimates for 5,000 to 10,000 tonnes. China soya imports slip to 3.52 mln tonnes in May, from 3.71 million in April but still 1.2 pct ahead of May 2008- China customs.
Rainfall in the southern and eastern areas of the US Midwest slowing soya seeding and hampering emergence of the corn crop but the moisture is favourable for growing crops elsewhere. US soya markets poised for volatile summer. Spot Midwest soyabean basis bids steady-weaker given the run-up in futures but basis remains strong. Malaysian palm ended down after short-lived rebound as crude eases.
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