US soyabean futures rallied more than 2 percent on Friday on firm cash markets, good export demand and spillover strength from higher soyameal futures, which surged more than 4 percent. Wheat futures edged higher for a second straight day, aiming for the first weekly gain in a month, amid concerns about crops in key exporting countries in the southern hemisphere.
Corn touched a one-week high on strong demand but later slipped on light profit-taking, with prices anchored by ample US supplies following a record-large harvest. The US soyabean harvest was also massive, estimated to be the third largest ever. The government's export forecast, already the largest in three years, was likely to increase further after strong early season sales, largely to top-importer China.
The US Department of Agriculture, in a monthly report on November 8, forecast US soyabean exports in the 2013/14 marketing year at 1.45 billion bushels. Sales in the marketing year to date are already at 90 percent of that forecast, versus only 74 percent at the same point a year ago. "The trade has realised that USDA will have to increase its export forecast in the next report. Realistically they might go up 25 million bushels in the December report and maybe a little further in the January report," said Rich Nelson, chief strategist at Allendale Inc.
"We still have a good deal of export demand to fill for that January-through-March time frame." USDA confirmed on Friday private sales of 115,000 tonnes of US soyabeans to China. That followed a weekly USDA report on Thursday that showed soyabean sales last week well above expectations at nearly 1.4 million tonnes.
Chicago Board of Trade January soyabeans added 28 cents to $13.19-1/2 a bushel, a 2.2 percent gain that was the strongest in two weeks. Soyabeans notched a two-month high of $13.22 during the session and gained 3 percent on the week, the second weekly gain in three weeks. December soyameal futures soared $16.80, or 4.1 percent, to $427.80 per ton. CBOT December corn shed 3/4 cent on Friday to close at $4.22-1/4 a bushel but ended the week up 1/4 cent. Although small, the weekly rise was the first in five weeks.
Commodity funds bought an estimated net 10,000 soyabean contracts on the day as well as a net 6,000 soyameal contracts and 3,000 corn contracts. CBOT December wheat added 3/4 cents to $6.49-1/2 a bushel for a 0.8 percent weekly gain. Wheat remained supported by worries about a reduced crop and lower quality in No 2 exporter Australia, where rains have hampered harvesting. Concern about a smaller-than-anticipated Argentine crop, which could bolster US exports, also supported prices.
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