Soya soars

Soya futures at the Chicago Board of Trade surged 5 percent on Friday following the release of a bullish soya plantings number from the US Department of Agriculture, traders said. CBOT soya closed 1 to 40-1/4 cents per bushel higher, with July up 40-1/4 at $8.50 per bushel. New-crop November was up 39-1/2 at $8.81-3/4 per bushel.
USDA on Friday in its June plantings report forecast US 2007 soya plantings at 64.081 million acres, sharply below an average of analysts' estimates for 68.0 million and well below the USDA forecast in March for 67.140 million.
"The soyabean market is trying to send a signal to Brazil to plant beans. Beans close to $9.00 sends a signal to South America to plant soyabeans," said Don Rose, analyst and president for US Commodities, Des Moines, Iowa.
Crop weather may restrain gains but the sharp cut in soyabean acreage may keep giving the soya complex a lift for several trading sessions, the traders said. "It's up to weather now. Weather in late July and August will determine the soyabean market for the rest of the year," Rose said.
Recent shower activity in the eastern Midwest was boosting crop prospects but more rain is needed, while western Midwest crop weather continues satisfactory, DTN Meteorlogix weather said on Friday. On Friday was first noticing day for deliveries on the July contract and the delivery tally at 1,876 lots was within estimates for 1,000 to 2,000 lots.
Soyameal followed soya and ended $6.20 to $13.00 per ton higher with July up $11.00 at $229.20. Deliveries on the July totalled 294 lots, within estimates for 200 to 300 lots. Soyaoil also followed soyabeans higher and ended up 0.99 to 1.12 cents with July up 1.06 at 36.63 cents per lb. Deliveries on the July totalled 2,447 lots, above estimates for 1,000 to 2,000 lots.