Soybean prices rallied on Wednesday after the release of the USDA March crop report. May soybeans closed 10 ½ cents higher. The report favored beans at the expense of corn as funds helped bolster prices. The USDA cut the 2009/10 carryout by 20 mil bu. to 190 mil. bu. This was slightly above what analysts expected. Exports were raised by 20 mil. bu. and crush was raised by 10 mil. bu. offsetting a 5 mil. bu. reduction in seed use, a 7 mil. bu. increase in imports and a 2 mil. bu. increase in production. Yield was left unchanged at 44 bpa. World carryout figures was raised by 940,000 mt to 60.67 mmt. reflecting the increase in the Brazilian crop. This report was likely an impetus by traders to cover short positions. Volume on Wednesday was heavy. Soybeans traded 155,225, Meal traded 65,631 and Oil traded 74,409. Funds were net buyers of an estimated 5,400 Soybeans, 3,200 Oil and 1,100 Meal.

Opening call lower. The weekly export sales figures released this morning were very disappointing for the soy complex. Amongst the highlights was a negative export number for beans and bean oil reflecting cancellations of cargoes. USDA's export sales report released early on Thursday showed export sales of U.S. soy last week at a minus 50,800 mt., below estimates for 200,000 to 300,000 mt. sales of U.S. soymeal last week at 2,200 mt., below estimates for 75,000 to 150,000 mt. sales of U.S. soyoil last week at a minus 9,500 mt., below estimates for 10,000 to 20,000 mt. Further indications of lacking demand was the closing of a Cargill Soybean plant in Lafayette IN. They reportedly stopped crushing soybeans for the balance of the week due to poor margins. Now that the March USDA report is behind us traders are looking for the next piece of information to drive the market. We may have that input today with the poor export sales. Look to the market to be under pressure all day. Maintain short positions. Look to sell May Soybeans @ 953. Overnight Chinese Soybeans closed higher, Meal and Oil lower.

Opening Calls: off 3-5 cents

 

Cash Markets -- CIF Soybeans up 2, off 2. FH Mar. +55 to +64, Mar. +50 to +55, April +45 to +51, May +45 to +52, June +45 to +52, July +45 to +55, Oct. +45 to +50, Nov. +45 to +50, Jan. +45 to +50