Soybean Complex Market Recap (Source: CME)
July Soybeans finished up 11 at 1476, 20 3/4 off the high and 11 up from the low. November Soybeans closed up 18 1/2 at 1370 1/2. This was 20 1/2 up from the low and 1 1/4 off the high. July Soymeal closed up 1.5 at 417.2. This was 3.0 up from the low and 9.4 off the high. July Soybean Oil finished up 0.34 at 56.03, 0.26 off the high and 0.33 up from the low. July soybeans closed 11 cents higher on the day and to a new high close but closed more than 20 cents off of the early highs. Weakness in the other grains and ideas that the market is overbought helped to spark the long liquidation selling to pull the market off of the highs. Rumors of China buying more US soybeans and continued talk of declining production estimates for South America, especially Argentina, helped to drive the market sharply higher. The rally pushed nearby soybean futures to the highest level since July of 2008. Nearby meal has led the market higher, pushing to the highest level since July of 2009. There are rumors that China bought near 1 million tonnes of soybeans with a mix of old and new crop. Cash basis levels at the gulf remain firm as producer selling has been light even after the recent surge in pries. A turn lower in corn and wheat helped drag the market well off of the early highs. The weekly hatchery report showed that eggs set in the past week were down 4.5% from last year.
Market Recap: Soybean Futures (Source: CME)
Soybean futures closed 8 to 12 1/4 cents higher in the May through September contract. The November through March 2013 contract finished 16 to 18 1/2 cents higher. Futures started very strong with old-crop contracts leading the way amid expectations declining South American crop forecasts will lead to additional strong demand for U.S. soybeans. But after the initial wave of buying worked through the market, intra-day profit-taking kicked in.
Oil World cuts Argentine soybean crop estimate (Source: CME)
Hamburg-based oilseeds analyst Oil World said on Tuesday it has again cut its forecast of Argentina's 2012 soybean crop because of drought damage, this time by 1.5 million tonnes. Oil World now forecasts Argentina's 2012 soybean crop at 42.5 million tonnes, down from 49.2 million in 2011. The deteriorating harvest outlook is likely to support global soybean prices, it said.
US soy at highest since 2008 (Source: CME)
Chicago soybeans rose to their highest in nearly four years, building on the previous session's rally on expectations of strong demand for U.S. beans amid shrinking South American supplies. "The soybean market is going to go higher as the entire edible oil sector is going to be severely constrained for the rest of the year," said Abah Ofon, a commodities analyst at Standard Chartered in Singapore.
VEGOILS-Oil World cuts Argentine soybean crop estimate
HAMBURG, April 24 (Reuters) - Hamburg-based oilseeds analyst Oil World said on Tuesday it has again cut its forecast of Argentina's 2012 soybean crop because of drought damage, this time by 1.5 million tonnes.
Oil World now forecasts Argentina's 2012 soybean crop at 42.5 million tonnes, down from 49.2 million in 2011. The deteriorating harvest outlook is likely to support global soybean prices, it said.
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