Global Soybean and soymeal futures soared to eight-month highs
yesterday on worries about the tightness of US supplies, which spurred
ideas that imports will set a record by a bigger distance than has been
initially thought. Chicago soybeans for July closed at $14.78 ¼ a
bushel, a gain of 0.9% - the contracts highest close since late
September last year. The benchmark July soymeal contract stood at
$438.70 a short ton, up 0.8%, also marking the highest close for the
counter since September.
However, the soya oil prices, despite
the latest gains, are hovering just under 50 cents per pound level-
maintaining a broad downward trajectory after hitting four month highs
near 55 cents levels in late January this year.
The dynamic is
also being spurred by ideas of strong demand not just from domestic
buyers, but foreign consumers - at a time when port workers in
Argentina, the top soymeal exporter, are on strike. US export sales of
soymeal, at 8.55m tonnes so far in 2012-13, are within 5% of the level
the US Department of Agriculture has forecast for the whole season, with
more than three months yet to go.
Indeed, the extent of the
drawdown in stocks may yet force the US, historically the largest
soybean exporter, to import the oilseed in 2012-13 in greater quantities
than the 544,000 tonnes the USDA is forecasting.
Oil World, the
influential edible oil analysis group, on Tuesday forecast that imports
would hit 870,000 tonnes (32m bushels), nearly double the previous
record, set last season, and bought partly from Canada and partly from
South America.
US importers have already made a series of
purchases of South American soybeans, including three cargoes soybeans
sold for shipment to the east coast last week, Oil World said.
Source by Commodity Insights
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