After the Bell: Soybean Futures End Near Session Highs (Source: CME)
Soybean futures were stronger throughout the day, ending near session highs with gains of 19 to 20 1/4 cents in old-crop contracts. September soybeans ended 16 1/4 cents higher, with new-crop up 7 to 13 3/4 cents. Funds bought an estimated 7,000 contracts of beans today. Futures were lifted by ongoing concerns about the South American crop, with the latest crop reduction coming from the Buenos Aires Grain Exchange, which lowered its Argentine bean estimate by 1 million metric tons (MMT) from last week to 44 MMT.
Soybean Complex Market Recap (Source: CME)
May Soybeans finished up 19 at 1441, 3 1/2 off the high and 21 up from the low. July Soybeans closed up 20 1/4 at 1444 1/2. This was 22 1/2 up from the low and 2 3/4 off the high. May Soymeal closed up 7.8 at 394.6. This was 7.7 up from the low and 1.2 off the high. May Soybean Oil finished up 0.78 at 57.23, 0.02 off the high and 0.82 up from the low. While the corn market sold off late, May soybeans stayed strong to close sharply higher on the session. Solid export sales news, a turn up in the other grains and a positive influence from outside market forces helped to support the market early in the session and the market was up sharply on the day into the mid-day. On top of strong weekly sales news, private exporters reported daily sales of 189,000 tonnes to unknown destination with 79,000 of the total for old crop and 110,000 tonnes for new crop. In addition, sales were reported for 115,000 tonnes of US soybeans to China with 55,000 tonnes old crop and 60,000 for the 2012/13 season. Net weekly export sales for soybeans came in at 460,100 metric tonnes for the current marketing year and 176,300 for the next marketing year for a total of 636,400. As of April 5th, cumulative soybean sales stand at 91.7% of the USDA forecast for 2011/2012 (current) marketing year versus a 5 year average of 92.9%. Sales of 138,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 33,200 metric tonnes for the current marketing year and 129,500 for the next marketing year for a total of 162,700. Sales of 90,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 2,100 metric tonnes, all old crop. Sales of 8,000 metric tonnes are needed each week to reach the USDA forecast. Ideas that China will remain a strong importer of US soybeans and fears of extremely tight new crop balance sheet has continued to provide underlying support. The Buenos Aires Grains Exchange lowered their forecast for Argentina soybean production to 44 million tonnes from 45 million previous.
The Hightower Report: Global Soybean Prices Will Increase as Supply Decreases By David Hightower - Tue Apr 10 11:51:00 CDT 2012 CT (Source: CME)
Soybeans: Higher Prices Needed to Attract Acreage or Curtail Demand
While fund traders are already holding a record high net long position in soybeans, the market is unlikely to experience a significant setback in the bull trend until traders see either a major jump in the planted area from the March USDA Prospective Plantings Report or prices reach a high enough level to significantly reduce demand. In a normal year, soybean demand would have shifted to South America at this point, but the lower production out of that region this year will keep demand focused on the US. Traders expect an extremely tight world supply until the South American harvest next February. The real question for the market in the meantime will be how high new soybean crop prices will need to move in order to significantly reduce demand from key end users like China.
EDIBLE OIL-Palm oil loses ground as Europe concerns weigh
SINGAPORE, April 12 (Reuters) - Malaysian palm oil futures fell after resuming trading from a one-day break as traders booked profits and buying interest was limited by concerns over the European debt crisis and a possible slowdown in the global economy.
"The market's down today on some profit-taking after the holiday. Fundamentally, supply and demand factors still remain largely the same. It's just that the market has been run up so this is purely a correction on uncertainty over external factors," said a trader with a foreign commodities brokerage in Malaysia.
India's March refined palm oil imports fall
NEW DELHI, April 12 (Reuters) - India's refined palm oil imports fell sharply in March from the previous month after buying fizzled out as an expected import tax rise in the country's budget to counter Indonesian export measures failed to materialise, a Reuters survey showed.
Refined palm oil imports had almost trebled in February from January as buyers scrambled to stock up ahead of the March 16 budget but dropped off in March as the world's top vegetable oil buyer did nothing to curb overseas purchases.
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