Market Recap: Soybean Futures (Source: CME)
July soybean futures posted a key bearish reversal today, rallying to a new contract high and then promptly caving to sellers. Other contracts also faced heavy selling heading into the close and finished 17 3/4 to 29 1/2 cents lower. Nearby contracts’ rally to new highs triggered a round of profit taking. Also encouraging this was CME’s late announcement that it will alter its initial margin requirements as of May 7.
Soybean Complex Market Recap (Source: CME)
July Soybeans finished down 18 1/2 at 1485, 27 1/2 off the high and 4 up from the low. November Soybeans closed down 24 1/4 at 1368 1/4. This was 5 3/4 up from the low and 26 1/4 off the high. July Soymeal closed down 4.5 at 429.7. This was 1.4 up from the low and 7.9 off the high. July Soybean Oil finished down 0.2 at 54.71, 0.78 off the high and 0.1 up from the low. July soybeans pushed to a new contract high of 1512 1/4 before closing down 18 1/2 cents on the day at 1485. The reversal after taking out the range of the past three trading sessions is seen as a negative technical development. The outlook for good moisture in the next 10 days across much of the plains and Midwest plus continued talk of the overbought condition of the market helped to pressure early in the session. However, buyers emerged on the early set-back for old crop soybeans to help support the market above yesterday's lows and the buying continued into the mid-session to drive July soybeans to moderately higher on the day and to a new high for the move. The sharp break in wheat, and then corn due to the weather impact eventually attracted a long liquidation selling trend in soybeans to drive the market sharply lower into the close. Private exporters reported the sale of 204,000 tonnes of US soybeans to unknown destination for the 2012/13 season. In addition, China bought 30,000 tonnes of US soybean oil for the 2011/12 season. News of more buying from China helped spark a strong move higher in the soybean oil market to support the rally before selling emerged to push the market lower into the close. A lack of deliveries and talk that the tightening supply of meal from South America will boost demand for US meal helped drive July meal to a new high for the move but the reversal and lower close is seen as a negative technical development.
China set to buy even more U.S. soy -Oil World
By Thomson Reuters - Wed 02 May 2012 09:40:00 CT
China is likely to buy even more U.S.-origin soybeans in the near term because of poor South American crops, Hamburg-based oilseeds analysts Oil World said on Tuesday.
Malaysia's palm tax policy may come after $3 bln IPO
SINGAPORE, May 2 (Reuters) - Malaysia's policy response to Jakarta's lower export tax for refined palm oil, which has shifted orders away to Indonesia, may come after the government lists its plantation assets in a $3 billion IPO, said top industry analyst Dorab Mistry.
Malaysia has struggled to formulate a response to the new tax regime since it came into force in September, allowing Indonesian refiners to export at a sizable discount and grab market share.
ADM official says it will be hard to buy US soybeans
By Thomson Reuters - Wed 02 May 2012 09:36:38 CT
Archer Daniels Midland Co is "very concerned" about the potential for low U.S. soybean supplies due to a shift toward corn plantings, said Craig Huss, chief risk officer. Farmers are expected to increase corn plantings to a 75-year high this spring to take advantage of high prices, and to plant fewer acres of soybeans than last year, according to U.S. government estimates.
Palm oil slips on higher output view
By Thomson Reuters - Wed 02 May 2012 09:35:18 CT
Malaysian palm oil futures edged lower, as expectations of higher production offset strong exports and an uptick in global economic activity. "Exports were strong but that is not the only factor. When exports were down 15 percent in the middle of April, the market also didn't respond very strongly," said James Ratnam, an analyst with TA Securities in Malaysia.
Canada canola sector aims for China breakthrough
WINNIPEG, Manitoba, May 1 (Reuters) - The Canola Council of Canada is working to convince China to scrap its trade restrictions against the oilseed, Canada's most profitable crop, and is hoping for a breakthrough this year, the organization's new head said on Tuesday.
Canadian government and trade officials have made frequent visits to China, and the Canola Council is wrapping up a joint research program to address China's concerns about the spread of the fungal disease blackleg in its domestic growing areas.
No comments:
Post a Comment