CBOT soybeans end up on tight US supplies; USDA report eyed

07 Feb, 2014

CHICAGO: Soybean futures on the Chicago Board of Trade closed higher on Friday on tight US supplies and positioning ahead of a monthly US government crop report due on Monday, traders said.

March soybeans settled up 5-3/4 cents at $13.31-1/2 a bushel but stayed inside of the previous day's trading range.

Analysts expect USDA on Monday to lower its forecast of US 2013/14 soybean ending stocks, reflecting better-than-expected export demand.

Concerns about the impact of recent dryness in Brazil lent support. Brazil's biggest grain cooperative, Coamo, said dry, hot weather has seriously hurt the soy crop, which is in the early stages of a record 90-million-tonne-plus harvest.

Soymeal settled higher but front-month March lost ground to back months on spreads.

Soyoil ended lower, halting a three-session recovery rally, after the March contract encountered technical resistance at its 50-day moving average just below 39 cents per lb.

The S&P GSCI commodity index on Friday began its periodic five-session effort to roll passive long positions in CBOT March contracts forward.

Malaysian palm oil futures ended near a two-week high.

Dalian May soybean oil jumped 3.4 percent on its first day of trading after shutting for the Lunar New Year holidays on Jan. 31.

For the week, CBOT March soybean contract rose 48-3/4 cents, or 3.8 percent, its biggest gain since August. March soymeal rose 4.8 percent and March soyoil rose 2.4 percent, its biggest advance since October.

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