CHICAGO: US soyoil futures surged to all-time highs on Friday after Indonesia blocked exports of palm oil, a competing vegetable oil, but soybean and corn futures sagged on profit-taking ahead of the weekend. Wheat futures were narrowly mixed lower in choppy trade as brokers weighed tightening global grain stocks against sluggish export demand for US wheat supplies.
As of 12:53 p.m. CDT (1753 GMT), Chicago Board of Trade July soyoil was up 1.03 cents at 80.67 cents per pound after reaching 83.21 cents, the highest-ever price on a continuous chart of the most-active contract.
Soyoil surged after Indonesia, the world’s top producer and exporter of palm oil, blocked exports from April 28 to tackle rising domestic prices. Easing COVID-19 restrictions have sparked a surge in demand for food and biofuels.
“The new news is the Indonesian halt, but it’s a continuation of what has been going on for some time here. Global vegoil supplies are not keeping up with the demand,” said Terry Linn, analyst with Linn & Associates in Chicago. However, CBOT soybean futures declined along with corn futures as traders booked profits and headed to the sidelines ahead of the weekend.
CBOT July soybeans were down 33 cents at $16.86-1/2 a bushel, turning lower after rising to a two-month high of $17.34. July corn was down 5-1/2 cents at $7.89-3/4 a bushel, retreating farther from a contract top set Tuesday at $8.14, the highest for a most-active corn contract since 2012. CBOT July wheat was up 1/2 cent at $10.77 a bushel.
Traders shrugged off support from fresh export sales of corn and soybeans. The US Department of Agriculture confirmed private sales of 1.347 million tonnes of US corn to China as well as smaller quantities of corn and soybeans sold to Mexico.
“The market seems to catch its breath after the recent rises, and operators will now focus on the weather conditions on the North American continent to follow the progress of soybean and corn planting,” consultancy Agritel said.
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