Market Recap: Soybean Futures (Source: CME)
Soybean futures posted double-digit gains in all but the front-month July contract. A friendly risk-taking environment combined with weather concerns to lift soybean futures today. The dry near-term forecast for much of the Corn Belt and South has traders concerned about the emerging soybean crop. A weaker U.S. dollar index was also positive for bean futures today.
Soybean Complex Market Recap (Source: CME)
July Soybeans finished up 4 3/4 at 1409 3/4, 13 1/4 off the high and 1 1/4 up from the low. November Soybeans closed up 15 1/2 at 1303 1/2. This was 9 1/4 up from the low and 11 1/4 off the high. July Soymeal closed down 1.7 at 416.2. This was 0.7 up from the low and 6.3 off the high. July Soybean Oil finished up 0.55 at 50.87, 0.29 off the high and 0.62 up from the low. November soybeans saw solid gains on the session as weather is beginning to become a more important force. Traders suggested that the extended forecast models are still showing a drier and warmer trend and traders are especially concerned with the areas which did not get any rains in the past week. Traders are concerned with germination and early development in some of the same areas which might go another week or more without much rain. Ideas that the market may need to add some weather premium "just in case" early June remains drier than normal has helped support the market. The surge higher in wheat and the US stock market has added to the positive tone as outside market forces were somewhat supportive. Heat and dryness in the wheat areas is also seen as a potential supportive force "if" double crop acres do not receive some good rains for planting and this added to the positive tone. For this afternoon's weekly update, traders see soybean planted area near 68% complete from 46% last week. Weekly export inspections came in at 12.68 million bushels which was below expectations and compares with 11.9 million necessary each week to reach the USDA forecast. Traders will monitor the topsoil issues in some state reports tonight.
VEGOILS-Palm oil rises on exports, Europe woes weigh
SINGAPORE, May 21 (Reuters) - Malaysian palm oil futures edged up on improving exports although gains were capped as investors remained wary over uncertainty surrounding the euro zone.
"Prices are poised to recover after the recent sell-off. It was oversold and a little divorced from fundamentals. Demand is creeping back and (supply) situation remains tight," said a trader with a local commodities brokerage in Malaysia.
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