US soy buoyed by exports, wheat slides with oil
Thursday, 15 November 2007
CHICAGO, Nov 14 (Reuters): US soybeans surged yesterday amid brisk export demand, especially from China, but soyoil prices fell as crude oil slumped on signs that the surge to nearly $100 a barrel will dent global demand.
Wheat futures were weighed by the slide in crude oil, major exporter Argentina reopening its doors to sales and a lack of fresh demand for supplies from the United States even though prices have fallen some 20 per cent since the end of September.
Soybean and soyoil futures at the Chicago Board of Trade were trading on opposite sides of the price spectrum, with the former rising to three-year highs on fundamentals and the latter dipping with oil after rising to near 33-year highs last week.
CBOT January soybeans settled 10 cents, or 1 per cent, higher at $10.56-1/4 a bushel. December soyoil fell 0.23 cent, or 0.5 per cent, to 44.23 cents a lb.
"Soybeans are supported by strong demand. There is talk that China will import 1.5 million to 2 million tonnes of soybeans in January, and all of that could come from the US," said analyst Joe Victor of brokerage Allendale Inc.
US December crude oil futures was down $3.21, or 3.3 per cent, at $91.48 a barrel in electronic trading at 1949 GMT after dropping to a low of $90.13.
Traders said soyoil prices were currently well above the break-even level to profitably produce biodiesel, adding that Tuesday's decline would help in it become competitive again.
Traders said there has been strong evidence of a pick-up in demand for soybeans from China, the world's top importer of the oilseed that is crushed into animal feed and cooking oil.
The pick up in Chinese demand has been linked to the country's attempt in keeping a lid on inflation, which was at a near 11-year high in October due to soaring food costs.
On Tuesday, the US Agriculture Department reported the sale of 107,000 tonnes of US soybeans to China.
Traders said soybean futures were also supported by drier than normal weather in north-eastern Brazil, the world's No. 2 producer and exporter of soybeans after the United States.
There was also support from a private estimate by analytical firm Informa, which forecast that farmers in the United States will plant 68.1 million acres of soybeans next spring, down from its October estimate of 71.7 million acres.
CBOT December wheat settled 13 cents, or 1.7 per cent, lower at $7.48 a bushel. March wheat, which rose to an all-time high for any wheat contract of $9.66-1/2 on Sept. 28, fell 12-1/2 cents, or 1.6 per cent, to $7.69.
CBOT corn prices fell, weighed by the slump in crude oil.
CBOT December corn fell 4-1/4 cents, or 1 per cent, to $3.74- ¾ a bushel.
Wheat futures were weighed by the slide in crude oil, major exporter Argentina reopening its doors to sales and a lack of fresh demand for supplies from the United States even though prices have fallen some 20 per cent since the end of September.
Soybean and soyoil futures at the Chicago Board of Trade were trading on opposite sides of the price spectrum, with the former rising to three-year highs on fundamentals and the latter dipping with oil after rising to near 33-year highs last week.
CBOT January soybeans settled 10 cents, or 1 per cent, higher at $10.56-1/4 a bushel. December soyoil fell 0.23 cent, or 0.5 per cent, to 44.23 cents a lb.
"Soybeans are supported by strong demand. There is talk that China will import 1.5 million to 2 million tonnes of soybeans in January, and all of that could come from the US," said analyst Joe Victor of brokerage Allendale Inc.
US December crude oil futures was down $3.21, or 3.3 per cent, at $91.48 a barrel in electronic trading at 1949 GMT after dropping to a low of $90.13.
Traders said soyoil prices were currently well above the break-even level to profitably produce biodiesel, adding that Tuesday's decline would help in it become competitive again.
Traders said there has been strong evidence of a pick-up in demand for soybeans from China, the world's top importer of the oilseed that is crushed into animal feed and cooking oil.
The pick up in Chinese demand has been linked to the country's attempt in keeping a lid on inflation, which was at a near 11-year high in October due to soaring food costs.
On Tuesday, the US Agriculture Department reported the sale of 107,000 tonnes of US soybeans to China.
Traders said soybean futures were also supported by drier than normal weather in north-eastern Brazil, the world's No. 2 producer and exporter of soybeans after the United States.
There was also support from a private estimate by analytical firm Informa, which forecast that farmers in the United States will plant 68.1 million acres of soybeans next spring, down from its October estimate of 71.7 million acres.
CBOT December wheat settled 13 cents, or 1.7 per cent, lower at $7.48 a bushel. March wheat, which rose to an all-time high for any wheat contract of $9.66-1/2 on Sept. 28, fell 12-1/2 cents, or 1.6 per cent, to $7.69.
CBOT corn prices fell, weighed by the slump in crude oil.
CBOT December corn fell 4-1/4 cents, or 1 per cent, to $3.74- ¾ a bushel.