Soy product futures rallied in unison with soybeans, with soymeal rallying to over 1-year highs on the threat of tighter available soy supplies for crushing, analysts said. The supportive impact of a lower crush forecast by USDA was partially offset by higher extraction rates or yields, analysts added. CBOT March soyoil ended 1.26c or 2.2% higher at 57.87 cents per pound, and March soymeal traded $18.60 or 5.1% higher at $381.50 a short ton. (Source: CME)
U.S. soybean futures soared to 2-year highs, rallying after federal forecasters trimmed supply forecasts to precariously low levels. The government's reduction in projected year end inventories to minimal levels is seen placing increased pressure on 2011 production to ease the burden of strong demand on supplies, said Dan Cekander, analyst with Newedge USA, a brokerage firm in Chicago. The market in turn propelled prices in an attempt to ration demand as well as entice farmers into expanding planted acres for the 2011 crop, Cekander said. CBOT March soybeans, the most active contract settled 58 cents or 4.3% higher at $14.15. Meanwhile, light pressure from weather forecasts calling for improve rain chances for parched growing areas of Argentina next week helped trim advances after futures initially soared to exchanged imposed 70c upper daily trading limits. (Source: CME)
Palm oil hits 3-week low; USDA data eyed
KUALA LUMPUR, Jan 12 (Reuters) - Malaysia palm oil tumbled to a three-week on a technical correction ahead of a key U.S. crop report that is likely to show tighter supplies.
"The rally around the New Year went ahead of the fundamentals, to some extent. Traders need the market to ease ahead of the USDA report," said a dealer with a foreign commodities brokerage in Kuala Lumpur.
Argentine rains fail to lift cloud over soybeans
BUENOS AIRES, Jan 11 (Reuters) - Recent rains in Argentina did not reach most of the country's soy-farming belt, where dry weather caused by La Nina is threatening the oilseed as it enters the critical pod-setting stage, a weather specialist said on Tuesday.
Argentina is one of the world's biggest exporters of soy and corn, and parched conditions this season have helped drive global prices close to their highest level since mid-2008 and stoked concerns about rising food price inflation.
Brazil's soybean crop developing well -Oil World
HAMBURG, Jan 11 (Reuters) - The outlook for Brazil's 2011 soybean harvest remains positive despite concerns about weather damage to crops in other South American countries, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
Oil World has slightly raised its forecast of Brazil's 2011 soybean crop to 67.5 million tonnes up from 67.3 million tonnes forecast in December and against 68.7 million tonnes harvested in 2010.
But this is still below the Brazilian government crop estimate on Jan. 6 of 68.55 million tonnes. Harvesting is now starting.
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