US soyabean futures extended gains on Friday, carried to a fresh 7-1-2 month high by a steady flow of exports and tightening global supplies that supported the market. Soyabeans have risen nearly 4 percent this week as US exports exceeded expectations again and demand for old-crop supplies remained unseasonably strong after a severe drought in Argentina slashed exports from the world's No 3 supplier.
Analysts said weather would be key to price movement as US farmers struggle to plant corn and spring wheat on their rain soaked farms. "The yields in South America are not getting any better and apparently the quality is pretty ordinary," said Paul McKay, a director with Commodity Broking Services in Australia.
"Weather in the US has delayed planting of corn and its even going to delay some of the soyabeans too." The Chicago Board of Trade July soyabean futures contract rose 0.4 percent to $11.51-3/4 per bushel by 0451 GMT, its highest since September. US exported 754,800 tonnes of soyabeans this week, above estimates for 650,000 to 750,000 tonnes, the US Agriculture Department said.
To date, current marketing year export sales are up 13 percent from the same point last year, with sales to China, the world's top importer, up 42 percent from a year ago. China bought 120,000 tonnes of US soyabeans for 2009/10 delivery on Thursday, even though the country has reduced purchases for July/August delivery after booking heavily in recent months.
China's Dalian soyabean futures rose 1.4 percent by midday on gains in the domestic soyameal market. "Soyameal futures are below 3,000 yuan per tonne and the market has space to increase as the spot prices is more than 3,100 yuan," said Shao Yuanhui of Bohai Futures in Dalian. Farmers in the eastern US Corn Belt were far behind schedule this year as rainy weather has kept them out of their fields for most of the spring.
But there were some forecasts for improved planting weather around the US corn belt next week. Farmers only need a small window of dry weather to seed the bulk of their grain. Chicago July corn futures fell half a cent to $4.27-3/4 per bushel. Damp conditions in the northern US Plains have slowed the seeding of the spring wheat crop in key states such as North Dakota. CBOT July wheat was unchanged at $5.93-1/4 a bushel.