On Friday Soybeans surged to new 19 year highs once again but were unable to hold the gains ending the session down 1 cent. Fridays strength stemmed from stronger than expected weekly export sales mainly from China. The USDA reported 1,296,300 mt of US soybeans sold for export last week, a marketing year high. This was well above estimates of 650,000 to 850,000 mt. Also adding support to Fridays trade was a rally in crude oil once again as the front month gained $1.70. Volume was heavy, 123,110 soybeans traded, 90,298 Oil and 86,025 meal. Funds bought an estimated 2,000 Soybeans, 4,000 Oil and even in Meal.
Early opening calls are higher. Strength in Crude oil and the weak dollar once again are the focus of traders today. China continues their buying ways as the USDA reports private sale of 221,000 mt US Soybeans to China for delivery in 2007/08 MY adding to last weeks purchases. The commitment of traders report with options as of November 13th. shows funds long 148,629 Soybeans up 4,620 Meal long 71,180 down 608 and Oil long 60,732 down 3252. Index funds long 174,096 up 228. Overnight Chinese Soybeans and Soybean Oil closed lower. Meal mixed. Malaysian Palm Oil futures closed higher.
Early Opening Calls: Beans 7 to 10 cents higher, Meal $2.00 to $4.00 higher, Bean oil .20 to .40 higher.
Top News
*USDA reports private sale of 221,000 mt US Soybeans to China for delivery in 2007/08 MY
-- Dalian Soybean May futures rose 6 yuan/mt to 4546 yuan/mt, however all other trading months were lower; Soymeal May futures were 1 yuan lower; Soyoil futures sharply lower at 122 yuan/mt to 9376 yuan/mt basis the May futures contract.
-- Malaysian Palm rose to 2950 ringgit/mt ($874.72) a rise of 46 ringgit ($13.63) from Friday's settlement.
-- eCBOT Soybean Vol. 90,995; Pit Vol. 27,000; Open Interest Change: +9,976
-- Weather: 6-10 Day Forecast: Below Normal Temps. Above Normal Precip. The Corn Belt will be mostly dry today. Rain and some snow will move west to east Tuesday and Wednesday.
-- Outside markets. Energy: crude higher, products higher ; Gold $1.30 higher & Silver: slightly higher; US $ lower vs Euro & Yen
Cash Markets
-- CIF Soybeans up 1-2. Nov. +28 to +32, Dec. +40 to +??, Jan. +50 to +55, Feb. +37 to +42, Mar. +38 to +41, Apr. +35 to +40, May +35 to +40, J/J +35 to +40.
Nathan T. Smith III
Linn Group
nsmith@linngroup.com
toll free: (877) 787-6278
local: (312) 896-2090
fax: (312) 896-2050
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