CBOT nearby soy ends up on firm cash; deferreds sag

Thursday, 17 May 2012 01:48

Posted by Abdul Ahad

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CHICAGO: Nearby soybean futures on the Chicago Board of Trade ended higher on Wednesday, gaining sharply against back months on firm cash markets and rumors of Chinese export demand for US old-crop supplies, traders said.

* The premium for spot July soybeans over new-crop November rose to $1.18-1/2 by the closing bell, gaining 10-1/2 cents for the day and surging from 84-3/4 cents at the end of last week.

* Soymeal posted the biggest gains in the soy complex, while soyoil tumbled more than 2 percent on meal/oil spreading.

* Trade expects USDA on Thursday to report US soybean export sales in the latest week at 1 million to 1.4 million tonnes, including 400,000 to 500,000 tonnes of old-crop soybeans.

* Worries about the euro zone's debt crisis pressured back months. US crude oil fell for a fourth session as political turmoil and banking problems in Greece reinforced concerns about the euro zone.

* As of 1:45 p.m. CDT (1845 GMT), ICE July soybean futures were up 9 cents at $14.22 a bushel, on volume of 1,078 contracts.

* ICE Futures Canada said it would raise margins for trading canola futures by about 16 percent, effective at the close of business on Thursday.

* The China National Grain and Oils Information Center projected a 7 percent drop in China's 2012 soy production to 13 million tonnes, after a 10.5 percent fall in 2011, as farmers shift to growing corn due to higher returns.

* Trade sources said CNGOIC raised its estimate of 2011/12 Chinese soy imports to 58 million tonnes, up 3 million from its previous estimate and up 2 million from USDA's current estimate.