US soya soars

06 May, 2009

US soyabean futures on the Chicago Board of Trade soared to a seven-month top on Monday, supported by tight domestic stocks and technical strength that is attracting fresh managed money into agricultural commodities, traders said. May soyabeans ended 13-1/4 cents up $11.15-1/4 a bushel but late profit-taking took market off its high of $11.28-3/4.
More active July closed 12-1/2 higher at $11.03-1/2. Old-crop July/new-crop November spread firmed by 12 cents. July closed at $1.33 premium to November due to hot demand for nearby soya. May soyameal ended $3.90 per ton up at $357.60; May soyaoil closed 0.51 cent per lb higher at 37.94 cents. Firmer crude oil and strong Asian vegoil markets supportive to CBOT soyaoil -trade. Malaysian palm hits 38-week high, tracking soya.
US soya stocks shrinking amid strong Chinese demand for American soyabeans and disappointing Argentine harvest. Talk among grain analysts and traders is Argentine crop could be as low as 31.0 million to 34.0 million tonnes. USDA currently is forecasting crop at 39 million tonnes. USDA late Monday reported that 6 percent of US soya crop seeded by Sunday, behind trade estimates for 7-10 percent and five-year pace of 11 percent.
Cool, wet spring delaying US planting but Midwest to see windows to seed corn and soyabeans this week-DTN Meteorlogix forecaster. Margins to trade soyabeans reduced effective Thursday. CBOT to launch calendar option spreads for corn, wheat, soyabeans, soyameal and soyaoil starting June 1. Large speculators cut net long position in CBOT soyabeans by 13,600 contract in week ended April 28.
CFTC supplemental reported. Large specs nearly even in soyaoil and trimmed net long in soyameal futures-options by roughly 3,200 contracts -CFTC. Overnight, there were 121 May soyabean deliveries, no soyameal and 2,051 soyaoil. US Midwest soyabean basis bids were steady late Monday amid farmer soya sales as spot cash above $11 in may locations -dealers.
Traders continue to monitor H1N1 flu virus for market fallout. Flu has been found in Canadian hog herd. Several countries have banned Canadian Mexican and US pork on concerns about global spread of the flu. Hog diets are rich in corn and the soyabean by product soyameal.

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