US soybean futures on the Chicago Board of Trade rallied 2 percent on Friday, supported by stressful crop weather in Argentina, the world's third largest soy exporter, and China's voracious appetite for US soybeans, traders said. Concerns about South American weather made traders nervous to be short soybeans before the long holiday weekend.
CBOT markets will be closed Monday for Martin Luther King Day, reopening for the electronic session Monday 6 pm CST. March soybeans closed 25-1/2 cents up $10.20 a bushel; May soy ended up 25-3/4 at $10.29. Soybeans lost ground to corn a reverse of this week after the new-crop soy-corn ratio reached 2.34 at Thursday's close. That level was enticing US farmers to plant a lot more soybeans and less corn -traders.
November soy-December corn ratio closed Friday at 2.23. Soymeal and soyoil supported by the rally in soy and corn. Meal got an extra boost from increased domestic feed demand given the frigid temperatures across Midwest. March soymeal ended up $11 a ton at $316; March soyoil closed 0.19 cent higher at 34.59 cents per lb. Commodity funds net bought 3,000 soybean contracts, 2,000 soymeal and 1,000 soyoil - trade.
USDA confirmed that China bought 116,000 tonnes of 2008-09 US soybeans in the past day. USDA also confirmed that 125,000 tonnes of US soybeans were sold to an unknown destination in the past day. The sale was likely to China, US traders said. Chance of scattered showers for Argentina over the weekend. Rainfall total 0.25 to 0.75 inch but coverage limited 30 to 40 percent in key corn, soy areas - DTN Meteorlogix forecaster.
Argentina to be hot and dry next week. High temperatures to reach upper 90s to low 100s Fahrenheit (32 to 37 Celsius) by middle of next week-DTN. Analytical firm Informa Economics estimated 2009 US soybean acres at 80.8 million, down from 81.5 million forecast in December. US farmers planted 75.7 million soybean acres in 2008. Informa raised its US 2009 corn acreage estimate to 82.7 million acres, up 400,000 acres from its December number.
Some traders expected the firm to raise its corn estimate by at least a million from its December figure. Private analyst Michael Cordonnier forecast Brazilian 2008-09 soy crop at 55 million tonnes, down from USDA's 59 million, based on field observations in southern Brazil. US Midwest basis bids for soybeans steady early Friday after scattered light sales on Thursday when CBOT rallied -dealers.