US MIDDAY: soybeans notch contract

02 Jun, 2007

Soybean futures at the Chicago Board of Trade rose to contract highs in most of the deferred months mid-morning Friday, boosted by the strength in the soymeal pit, traders said. July soybeans were up 8-1/4 cents at $8.14-1/2 per bushel by 11:20 am CDT (1620 GMT).
The back months through November 2008 were up 5-1/2 to 9 cents, with August 2007 to July 2008 and November 2009 notching contract highs. Soymeal backed off its early highs, up $1.90 to $3.40, with July $3 firmer at $219.90.
July meal had climbed $4.50 per ton to $221.40 as Fimat USA bought 4,500 July meal contracts. The strength came amid worries about a possible disruption in crushing at a Danville, Illinois, plant which is in the midst of contract negotiations with its union employees, traders said.
The strength in soybeans and soymeal pulled soyoil higher a reverse of recent trends when soyoil was the complex leader following the red-hot Malaysian palm oil market. July soyoil was up 0.20 cent at 35.91 cents per lb. The deferreds were 0.13 to 0.23 cent higher. Weekly export sales were strong for soybeans and soyoil, coming in above expectations while soymeal sales were close to expectations.
US basis bids for soybeans remain weak as the pipeline was filled due to recent country sales as farmers took advantage of this week's CBOT rally to price crops, cash dealers said.

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