US soyabean futures notch one-month top

22 Mar, 2009

US soyabean futures on the Chicago Board of Trade scaled a one-month peak on Friday, led by nearby March, on uncertainty over the export status of Argentina which could lead to more US export sales, traders said. May soyabeans ended 11-1/2 cents higher at $9.52 a bushel. New-crop November soya closed 1/2 cent up at $8.93.
May soyameal closed $4.20 per ton higher at $300.50 per ton - closing above $300 for the first time since mid-February. May soyaoil settled 0.36 cent per lb up at 32.25 cents per lb. Commodity funds net bought 2,000 soyabean contracts, 1,000 soyameal and 1,000 soyaoil.
A squabble between Argentine farmers and their government over a soya export tax threatened to disrupt shipments out of Argentina, the third largest soya exporter and No 1 meal trader. After CBOT markets closed, farmers announced they would halt sales of grains and livestock for seven days beginning Saturday, further dimming hopes for any quick resolution to the conflict.
China, the worlds largest soya buyer, typically switches its buying program to South America from the United States this time of the year when cheaper, freshly harvested Argentine and Brazilian soyabeans move into marketing channels. But signs of Chinas nervousness over Argentine exports surfaced this week.
USDA confirmed early Friday that China bought 165,000 tonnes of US soyabeans 55,000 tonnes for 2008-09 shipment. Soya rallied despite some recovery in the dollar, after it plummeted this week on news that US Federal Reserve would buy $300 billion in Treasury securities to boost the economy. A weak dollar is supportive to commodities, making US and grains cheaper to overseas buyers.
Drier and warmer weather in Argentina over the next five days favour maturing crops and early harvest while showers in Brazils Parana and Mato Grosso region to disrupt harvest. US Midwest basis bids were tumbled by Friday, reflecting this weeks CBOT rally that triggered fresh farmer sales both in the US and South America-dealers. Malaysian palm oil futures scale one-week high on crude, soyaoil surge.

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