Soybean prices closed a little firmer on Friday up 3 ¾ cents. Prices gapped higher initially on the news that finally the USDA announced sales of 1.25 mt of Corn to unknown destinations. It is being widely assumed that this is the purchase from China that many have been expecting an announcement on. However both US and China have denied that a transaction took place. In any event most believe this sale is proof. That gave the ag markets reason to rally. Beans received spill over support from firmer corn prices. However the best levels of the day (13 cents higher) were in the first hour of trade and gradually succumbed to corn bean spreading that pressured the beans back to only 3 ¾ cents higher on the day after making a intra day session high of 1367 ¾ and settling at 1358 ¾. Volume on Friday was low. Soybeans Traded 129,865, Meal 44,871 and Oil 97,616, Funds were net buyers of an estimated 2,500 Soybeans, 3,000 Oil and sold 1,500 Meal.
Opening Call higher. Weekly commitment of traders report shows increases in fund ownership in the bean complex. Index funds added 3,145 Soybeans to take their position to 122,976 Meal increased by 616 to 16,272 and Oil was down 4,759 to 76,184. Hedge funds added 20,639 Soybeans taking their position to 114,839, Meal up 10,174 to 26,817 and Oil length was off 78 to 43,367. Brazil grain analyst Safras Mercado lowered their 2010.11 Brazil Soybean production estimate to 71.5 mmt vs 71.9 in their last estimate compared to last years 68.6 mmt. Acreage report due out Thursday morning expect traders to reposition themselves ahead of this report. $USD is trading 10 lower, Crude oil is $115 lower, Gold $8.00 lower and equities slightly firmer
Opening Call: Soybeans 6 to 8 cents higher, Oil steady and Meal $1.00 to $2.00 higher.
Top News
-- Dalian Jan. Soybean futures were up +41 @ 4,625 yuan/mt., Jan. Soymeal was down -5 @ 3,388 yuan/mt. -- Dalian Sept. Palm Oil futures were up +16 @ 9,136 yuan/mt., Sept. Soyoil was up +12 @ 10,092 yuan/mt. -- In Malaysia Jun. Palm Oil futures were up +21 @ 3,282 ringgit/mt., range on the day was 3,305 to 3,252. -- Liffe May Rapeseed futures were up +3.00 @ 475.50 euros/mt. -- Globex Soybean Vol. 117,578 ; Pit Vol. 8,176 ; Open Interest Change: - 7 -- Weather: 6-10 Day Forecast: Below Normal Temps. Normal to Above Precip.
-- Outside markets: Energy Complex -1.33 at $104.07; Gold & Silver: -12.6 at $1413.6 & -0.459 at $36.590; US $ +0.170 at $76.655
LaSalle Street News Cash Markets
-- CIF Soybeans off 3 .Mar. +?? to +66, Apr +?? to +63, May +?? to +64, J/J +59 to +62, Oct. +63 to +70, Nov. +65 to +73, Jan. +65 to +73