Soybeans gain as crude oil rally, dollar decline boost outlook
Friday, 11 September 2009
NEW YORK, Sept. 10 (Bloomberg): Soybeans advanced as rising crude oil prices and a decline in the dollar bolstered investors' confidence in improved global commodity demand.
The oilseed gained as much as 0.6 percent after crude climbed for a fourth day on an industry report showing U.S. stockpiles dropped the most in a year last week. The dollar fell to its lowest in almost nine months against the euro, boosting the appeal of commodities priced in the U.S. currency.
"The oilseed market will remain reasonably supported until the first quarter of next year," Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said by phone from Sydney. Oilseed and grain investors "will keenly watch the development in those outside markets, particularly the dollar and the oil market."
Soybeans for November delivery climbed 0.5 percent to $9.3325 a bushel in after-hours electronic trading on the Chicago Board of Trade at 3:12 p.m. Singapore time.
The U.S. Department of Agriculture probably will forecast a record soybean harvest of 3.251 billion bushels, up 1.6 percent from its August estimate, according to the average estimate of 30 analysts in a Bloomberg News survey. The department's next forecast is due Sept. 11.
The record crop in the U.S., the world's largest soybean grower and exporter, "cannot solve the global supply problem," Oil World Executive Director Thomas Mielke said Sept. 7. Supply of 10 major oilseeds from September through February may fall by 5 million tons from a year earlier, he said.
The oilseed gained as much as 0.6 percent after crude climbed for a fourth day on an industry report showing U.S. stockpiles dropped the most in a year last week. The dollar fell to its lowest in almost nine months against the euro, boosting the appeal of commodities priced in the U.S. currency.
"The oilseed market will remain reasonably supported until the first quarter of next year," Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said by phone from Sydney. Oilseed and grain investors "will keenly watch the development in those outside markets, particularly the dollar and the oil market."
Soybeans for November delivery climbed 0.5 percent to $9.3325 a bushel in after-hours electronic trading on the Chicago Board of Trade at 3:12 p.m. Singapore time.
The U.S. Department of Agriculture probably will forecast a record soybean harvest of 3.251 billion bushels, up 1.6 percent from its August estimate, according to the average estimate of 30 analysts in a Bloomberg News survey. The department's next forecast is due Sept. 11.
The record crop in the U.S., the world's largest soybean grower and exporter, "cannot solve the global supply problem," Oil World Executive Director Thomas Mielke said Sept. 7. Supply of 10 major oilseeds from September through February may fall by 5 million tons from a year earlier, he said.