US soyabean meal futures rose by the daily trading limit to a new contract high on Monday as processors scrambled to obtain scarce supplies of the oilseed. But new-crop US corn futures fell for the fifth time in seven sessions as much of the Midwest benefited from weekend showers and more rain is expected at a time when corn is entering its most important stage of development, pollination.
The rally in soyameal comes as processors worry that soya supplies will run short ahead of the autumn harvest due to strong demand. Inventories of old-crop soyabeans, which are crushed into meal used to feed livestock, are expected to drop to a nine-year low by August 31. Chicago Board of Trade August soyameal closed up the daily, exchange-imposed limit of $20 at $502.40 per short tonne, topping the previous contract high of $484.70 from Friday.
August soyabeans climbed 29-1/2 cents to $15.20-1/4 a bushel, while new-crop November soyabeans jumped 14-1/2 cents to $12.88-1/2 a bushel. Gains in new-crop soya futures trailed soaring nearby prices as farmers are expected to bring in a massive crop this autumn due to large plantings. Still, the crop's critical development period is a few weeks off, fuelling uncertainty about the size of the harvest.
Front-month soya prices needed to climb to slow demand for old-crop supplies ahead of harvest, said Terry Roggensack, grain analyst for The Hightower Report stocks and commodities forecast service. Corn futures weakened on forecasts for favourable weather as the crop enters its most important period of development, pollination, according to traders. Food companies, ethanol producers and livestock producers are hoping a record-large crop will replenish inventories that are expected to drop to a 17-year low by August 31.
The US Department of Agriculture on Monday said 43 percent of the crop was silking, the reproductive phase that occurs during pollination. That was above analysts' expectations for 40 percent but below the five-year average of 56 percent, following planting delays in the spring.
The percentage of corn rated as good to excellent fell to 63 percent from 66 percent a week ago, according to USDA. Soyabeans were rated 64 percent good to excellent, down from 65 percent a week ago. Analysts had expected a 1 to 2 point decline for each crop. CBOT September corn lost 3-1/4 cents to $5.40-3/4 a bushel, and new-crop December corn fell 2-3/4 cents to $4.98.