Tuesday Morning Soybean Update-Heavy Volume And Continued Demand Out Of China Support Bean Complex..
Nate Smith - 12/16/09 9:03am
Soybeans closed unchanged on Tuesday. After rallying 13 ˝ cents on news of fresh sales of 290,000 mt of soybeans to China the market set back from the highs and traded lower into the close. Despite the lackluster close Jan beans came within a dime of the recent 1078 high. Strong demand out of China has been keeping the market firmer. There was talk of large short covering of a short position in the July November Spread. Volume on Tuesday was heavy. Soybeans traded 188,683, Meal traded 53,434, Oil traded 67,534. Funds were net buyers of an estimated 3,000 Soybeans, 1,000 Oil and 1,500 Meal.
Opening call higher. This morning theUSDA reports private sale of 116,000 mt of US Soybeans to China for the 09/10 MY. Demand from China for US Soybeans remains robust until South American crops become available and traders say this should keep soybean prices from breaking. The first South American Soybeans to become available are from Brazil and that starts in February and beans out of Argentina don’t become available until April. Argentine Ag. Minister estimates Argentine Soybean planting at 76% complete. $USD is trading 20 lower this morning and Crude oil is .80 higher. Look for soybeans to open firmer this morning and break with resistance at 1060 to 1062 area a move above 1068 would set up a run at the recent highs of 1078 in Jan Beans. Overnight Chinese Soybeans, Meal and Oil futures closed higher.
Opening call: Soybeans 4 to 6 cents higher, Meal .50 to $1.00 higher, Oil .20 to .40 higher
Top News **USDA reports private sale of 116,000 mt of US Soybeans to China for the 09/10 MY -- Taiwan's BSPA group is seeking between 40-60,000 mt of US Soybeans in a Thursday tender for shipment between LH Jan & FH Feb -- USDA's CCC tendering for 4,850 mt of US soybean oil in a Dec 21st deadline with shipment between Jan 6 to 16th -- Retender announced for Dec 17th by Taiwan Sugar Corp for 12,000 mt of US Soybeans, acc. to traders -- Soy planting in Argentina is said to be 76% complete, acc. to the country's Ag Sec, while Corn planting was also said to be 76% complete -- Oilseed analysts, UkrAgro, in the Black Sea region suggest an increase to area devoted to rapeseed planting will increase by 200,000 ha to 2.4 mln ha this next season as foreign demand increases -- Deputy Ag official in India says progress for winter planted crops such as rapeseed & wheat have good progress -- Prices for Corn, soybean & wheat are expected to average in 2010 $4.19/bu, $9.63/bu & $5.25/bu respectively, acc. to forecast by JPMorgan -- Malaysian crude palm oil in the cash market traded above 2,500 ringgit/mt for prompt December delivery -- Traders also note refined palm oil cash markets in Malaysia traded 15 ringgit higher on Wednesday at 765/mt, while refined palm olein also added 15 ringgit to 780/mt -- Canola and flax crop exports out of Canada will drop by about one-quarter the country's agriculture department reported on Tuesday -- $100 mln Vietnam soybean processing facility has begun construction, acc. to Bunge officials. The plant would begin production in 2011 with a 3,000 mt/day crushing rate. Company officials see double digit annual growth rates in the region -- Sep soybean futures on the Dalian Exchange rose 10 yuan to 4,027 yuan/mt, other contract months were 2 to 18 yuan higher also -- Dalian soymeal futures traded over 1.3 mln contacts, rising 23 yuan to 2,999 yuan/mt; active Sep soyoil futures traded 1 mln contacts rising 66 yuan to 7,922 yuan/mt -- Active Sep palm oil futures jumped 108 settling Wednesday session at 7.006 yuan/mt -- Malaysian crude palm oil traded above 2,500 ringgit/mt for December delivery -- Liffe Feb rapeseed futures were +0.50 euro better at 283.50 euros/mt. -- Globex Soybean Vol. 167,148; Pit Vol. 12,159; Open Interest Change: + 3,501 -- Weather: 6-10 day Forecast: Normal to Below temps. Normal to Below Precip. -- Outside markets: Energy Complex +0.56 at $71.25; Gold & Silver: +9.2 at $1132.2 & +0.080 at $17.535; US $ -0.130 at $77.170
Cash Markets -- CIF Soybeans steady off 3. Dec. +52 to +60, LH Dec. +56 to +62, Jan. +62 to +68, Feb. +54 to +58, Mar. +25 to +45, April +25 to +40, May +30 to +45