The Chicago Board of Trade soyabeans futures market was strong early Friday, lifted by US crop concerns as the eastern Midwest remains dry and amid outlooks for heat to move into the western belt, traders said. "All it's worried about is weather," said Roy Huckabay, an analyst with The Linn Group in Chicago.
A drier and hotter weather pattern was settling into the US western Midwest, said Meteorlogix weather service early Friday.
Central and northern Illinois also will remain mostly hot and dry but there is a better chance for cooler temperatures and some rains in the rest of the eastern Midwest.
August soyabeans were up 6-1/2 cents at $7.26-1/2 per bushel, and new-crop November was 6 higher at $7.37 by 11 am CDT (1500 GMT).
Refco and DT Trading were featured buyers of roughly 500 to 800 November, traders said. Commercial selling was taking the market off its highs, with Cargill Inc selling 500 November, 300 August, traders said.
The export market remains quiet as importers turn to South America for cheaper supplies. Also bearish were reminders that poor crushing margins in China was slowing demand for soyabeans.
That along with intense competition from cheaper palm oil prompted many Chinese soya crushers to shut down, potentially limiting import demand later this summer, traders in Beijing said on Friday.
Midwest cash basis bids for soyabeans were mostly steady early Friday, with values weaker in the western belt where processors were planning to take downtime.
However, CIF soyabeans at the US Gulf were firm on Friday as eastern processors bid up for soyabeans, trying to pull supplies away from the export market.
There were 271 deliveries on Friday against the expired July contract. They were met by commercial stopping, with the house account of Term Commodities taking 105 lots.
Soyabean registrations with the CBOT dropped to 1,238 lots late Thursday from the previous 1,240.
The soyameal market was strong. The rally in soyabeans was supportive and thin trade gave soyameal and extra boost, traders said.
August meal was up $4.70 at $228 per ton, with deferreds $4 to $7.50 higher.
CBOT soyaoil futures were also underpinned by the rise in soyabean prices. August soyaoil was up 0.12 at 25.62 cents per lb, with deferreds up 0.16 to down 0.05.
Comments
Comments are closed.