Pro Farmer: After the Bell Soybean Recap (Source: CME)
Soybean futures added to the strong price surge today as traders continue to actively build premium into the market amid drought-induced supply concerns. Forecasts call for extreme heat across the country's midsection next week, which will likely take another big bite out of the crop. Timing for severe crop stress couldn't be much worse with the crop flowering and setting pods. As a result, there's incentive for traders to build more premium into prices.
Soybean Complex Market Recap (Source: CME)
August Soybeans finished up 23 3/4 at 1757 1/2, 20 1/4 off the high and 28 1/2 up from the low. November Soybeans closed up 34 at 1686 1/4. This was 41 1/4 up from the low and 4 3/4 off the high. August Soymeal closed up 11 at 543.0. This was 11.5 up from the low and 9.0 off the high. August Soybean Oil finished down 0.05 at 54.35, 0.35 off the high and 0.22 up from the low. August soybeans traded sharply higher into the close today while the November contract led the complex higher and posted new highs for the move. August soybean meal traded limit higher early in the session but backed off midday. Soybean oil traded lower on the day. Midday session weakness offered bulls another chance to enter the market prior to next Monday's crop conditions report as the trade expects declines in the good/excellent category. While recent rainfall in the southeast and delta have been beneficial to soybean crops, conditions in the western Corn Belt have likely gotten worse. Temperatures are expected to reach 95-105 degrees in Kansas, Missouri, South Dakota, Iowa, and Nebraska this week; increasing stress on crops. The blistering temperatures are expected to last the middle of next week. Weather services reported a 30 day forecast calling for above normal temperatures and below normal rainfall, which could cause further deterioration in soybean yields. Analysts in Brazil expect the 2012/13 Brazilian soybean crop to produce 82.29 million tonnes, up 24% from the current soybean crop. The market shook off the bearish headline as traders focus on US crop conditions. Grain markets are trading higher despite the negative outside markets and a sharply higher US Dollar.
VEGOILS-Palm oil edges up, weak exports cap gains
SINGAPORE, July 20 (Reuters) - Malaysian crude palm oil futures edged up as crop-damaging weather in the U.S. Midwest raised prospects of a smaller supply of soybean oil shifting demand to the cheaper palm oil.
"From the inventory level alone, it is negative to prices. But the dry season in the United States is still very much in the picture," said Alan Lim, research analyst with Malaysia's Kenanga Investment Bank.
No comments:
Post a Comment