Soybeans traded mostly higher on Wednesday July closed unchanged and New crop Nov up 7 ¼ cents. Traders say the combination of the slow pace of US planting, the Argentine farmer strike and small supply outlook have been boosting price. Volume in the Soy complex was extremely low. Soybeans traded 86,071, Meal 43,880 and Oil 48,720. Funds were sellers of an estimated 1,000 Soybeans, 2,000 oil and bought 2,000 Meal.
Early Opening call Lower. Weekly export sales figures released today show 201,700 mt of soybeans sold within the range of analysts expectations of 100 to 250 mt. Oil Sales were reported at 10,900 mt above estimates of 5 to 10,000 mt. and Meal sales were 116,800 mt within estimates of 50,000 to 150,000 mt. Today the USDA reports a private sale of 126,000 mt of US Soybeans to China. Traders say calls are lower today due to potential profit taking from the recent run up in prices and a plea by Argentine presidents Christina Fernandes’s appeal for unity. Today is the deadline Farmers set for extending the strike and Farmers indicate they may suspend the strike if the Government takes a step forward and many believe this may help. Also forecasts for better seeding weather next week could pressure the market. Informa will release new planted acreage estimates for Corn and Soybeans and Corn this morning. Overnight Chinese Soybeans, Meal and oil futures closed lower. Malaysian Palm Oil futures closed lower on disappointing export and overall weakness in global vegoil prices. 6 to 10 day forecast calls for below normal temps and normal to above normal precip
Early Opening Calls: Soybeans down 8-10 cents, Meal $2.00 to $3.00 Lower and Oil .30 to .50 lower.
Top News -- USDA reports private sale of 126,000 mt of US Soybeans to China -- Farm legislation in the US House passed on a 318-106 vote. The President has signaled he would veto the current $290 Bln, 5 yr bill approved by the House, but the Senate has yet to take up bill. -- Informa will release its Soybean Acreage May Estimate in their Apr report the pegged it at 71.3 mln ac, USDA estimate 74.8 mln ac -- Dalian Soybean complex lower, Jan futures fell 41 yuan overnight. Active Sep Soymeal futures 2 yuan higher at 3,596 yuan/mt; Soyoil gives back some early week gains, Sep off 222 yuan to 11,326 yuan/mt -- Malaysian Palm Oil futures July contract was down 39 ringgit to 3,519 ringgit ($1,077)m/t. -- Globex Soybean Vol. 69,212; Pit Vol. 12,017; Open Interest Change: - 427 -- Weather: 6-10 Day Forecast: Below Normal Temps. Normal to Above Precip. The Corn Belt will see showers and thunderstorms today favoring the south and east. Friday looks dry. Saturday will see some light showers in the west. A slight chance of showers in the east Saturday. Dry Sunday. Temps normal to below. -- Outside markets: Energy Complex +1.20 at $125.42; Gold & Silver: +8.6 at $875.5 & +0.257 at $16.865; US $ is trading lower vs. Euro & Yen.
Cash Markets
-- CIF Soybeans steady up 5. May +8 to +13, June +18 to +20, July +25 to +32, Aug. ?? to +35, Sept. +17 to +25, Oct. +18 to +20, Nov. +20 to +28, Dec. +12 to +25.
Nate Smith Linn Group nsmith@linngroup.com toll free: (877) 787-6278 local: (312) 896-2090 fax: (312) 896-2052
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