US soybean futures on the Chicago Board of Trade rallied to a three-month top on Friday amid the broad-based commodity rally led by the flaming crude oil market, traders said. New York crude oil futures rocketed $11 a barrel to an all-time high near $139 on rising Middle East tensions after remarks by Israel's transport minister that an attack on Iranian nuclear sites looked "unavoidable."
Also lifting crude oil was a weakened dollar and a report by Morgan Stanley, one of Wall Street's biggest energy traders, saying US crude oil may reach $150 by July 4. The strength in commodities was reflected in the Reuters-Jefferies CRB Index of 19 commodity futures which closed 3.6 percent higher after making an all-time high of 441.57 points.
The ongoing Argentine farm strike remains supportive as it has paralysed trade in one of the world's largest soy exporters. That has increased interest in US soybeans and soymeal as world customers switch sales from Argentina.
No grains traded in Argentina's main port of Rosario for the eight straight session due to the strike. Argentine farm leaders were meeting on Friday to discuss whether to end their most recent strike early or extend it beyond Sunday night, as truckers' roadblocks stoked fears of food shortages.
Also supportive were concerns about the US soy crop that continues to get hit by rains. It is preventing farmers from finishing planting their crops and slowing emergence. Profit-taking surfaced in CBOT commodities, taking the markets off their early highs.
July soybeans ended 5-1/2 cents higher at $14.57-1/2, after reaching $14.88 - its highest price since March 6 when soybeans traded above $15. The products closed mixed with soyoil lifted by crude oil. The strength of both triggered profit-taking in the meal/oil spread.
July soyoil ended 1.69 cent higher at 64.34 cents per lb. July soymeal closed 50 cents down at $373 per ton. Volume was huge. Estimated soybean trade was 198,771 futures and 38,553 options. Soyoil volume was seen at 75,082 futures and 1,355 options. Soymeal trade was pegged at 55,790 futures and 3,242 options.
Commodity funds net bought 2,000 soybean contracts, 3,000 soyoil and were about even in soymeal, traders said. Soybean option volatility has risen 3-4 percent over the past three days, reflecting increased call buying, floor traders said. Traders expect USDA to shave its forecasts of 2007/08 and 2008/09 US soybean ending stocks in its monthly crop report issued on Tuesday. Good export demand for soybeans and worries about the size of 2008 crop due to spring rains were seen cutting expected supplies, they said.
US Midwest spot basis bids for soybeans were soft after a pickup in farmer sales, triggered by this week's CBOT rally. Malaysian crude palm up 3 percent to one-week high as crude oil soars.