PARIS: Soymeal offers on the European meals and feeds market were higher on Monday, adjusting to a pre-weekend rebound in Chicago in a session otherwise lacking direction due to a US holiday.
Chicago soybean bounced off a four-month low on Friday while soymeal came off a near two-month trough to end higher in a technical recovery.
However, Martin Luther King Jr. holiday in the United States meant Chicago futures did not trade on Monday, depriving the European market of usual impetus.
No significant trading was confirmed in Europe.
Traders were digesting closely watched US Department of Agriculture (USDA) crop data released at the end of the European session on Friday.
The data offered mixed signals to soy markets, with cuts to expected production in the United States and Argentina offset by an increased harvest outlook for Brazil.
"Brazil more than compensates the negative crop numbers for Argentina and the US," one broker said of the USDA estimates. "Overall it was a pretty bearish report."
A downward revision to projected US soybean exports and an increase to expected US soybean stocks also gave the data a bearish tone, traders said.
Soy markets could face additional pressure after a weather analyst said weekend rain in drought-hit areas of Argentina's farm belt helped growers plant soybeans.
In Europe, Brazilian high protein soymeal for January delivery was offered $3 up from Friday at $391 a tonne, CIF Rotterdam, while Argentine high protein soymeal for the same period was also marked up $3, to $375 a tonne CIF Rotterdam.
A weaker dollar, which slipped to a three-year high against a surging euro on Monday, also supported prices of dollar-denominated commodities.
The euro's strength capped gains in rapeseed meal.
Rapemeal was quoted between unchanged and up 1 euro, with February delivery offered at 192 euros ($235.35) a tonne.
Rapeseed futures on Euronext eased under pressure from the euro, with spot prices testing the psychological level of 350 euros.
Comments
Comments are closed for this article.