Soybean traders continue their buying ways rallying the front month January contract 6 ¾ cents on Thursday. The market was supported by strong weekly export sales and a bigger than expected crush last month.. With an already high priced market and typical pre-holiday slow down the market the rally on Thursday was impressive traders say. Volume was impressive as well, 158,267 Soybeans, 82,062 Oil and 70,804 Meal traded. Funds bout an estimated 2,000 Soybeans, 2,000 Meal and sold 1,000 Oil.
Early Opening Calls are higher. There is not a lot of new news and expectations are for market action to thin out ahead of the holidays. Traders caution that lighter trade could lead to wide erratic price swings. In a report issued by Chinese think tank China National Grain and Oil Information Center (CNGOIC) said soy demand from crushers is continuing to rise and expectations are for the markets to stay bullish in the coming days. Overnight Malaysian crude palm oil futures rose 1.2% on Friday as fears that another wave of floods will hit palm oil estates. South American is reportedly improving and an outlook for good rains of .5 to 1.5 inches are predicted for Argentina which will help dry conditions there. Chinese Soybeans were higher overnight on the Dalian exchange.
Early Opening Calls: 6-8c better; Soymeal $2 higher; Soyoil 15-20 pts higher
Top News
-- Malaysian palm oil stocks in the Dec 1-20th period were pegged at 946,210 mt up from 925,104 mt in the same period in Nov, acc. to figures released by Intertek
-- People's Bank of China released estimates that 2008 nominal economic growth would be a 10.9% pace, while inflation is expected to rise 4.5% and real GDP would check in at 6.4% pace, acc. to Chinese news citing a recent central bank research report
-- Dalian Sept Soybean futures rose 22 in overnight trade settling at 4469 yuan/mt; Sept Soymeal again actively traded & 13 lower at 3290 yuan/mt; May Soyoil futures rose slight +8 at 9792 yuan/mt
-- Malaysian Palm oil March contract was up 35 ringgit at 2,997 ringgit ($895) a tonne.
-- eCBOT Soybean Vol. 116,203; Pit Vol. 35,526; Open Interest Change: +5,616
-- Weather: 6-10 Day Forecast: Above Normal Temps. Above Normal Precip. Most of the Corn Belt will be dry today. Saturday and Sunday will see rain and snow favoring southern and eastern areas. Monday and Tuesday looks dry. Temps normal to below.
-- Outside markets: Energy Complex down slightly at $90.97; Gold & Silver: +4.6 at $803.8; US $ up slightly vs. Yen and down vs. Euro
Cash Markets
-- CIF Soybeans steady . LH Dec. +35 to +40, Jan. +38 to +45, Feb. +34 to +38, Mar. +35 to +41, Apr. +28 to +33, May +33 to +40, J/J +35 to +40.
Nate Smith
SMS Brokerage
nsmith@jerrygulke.com
toll free: (877) 787-6278
local: (312) 896-2090
fax: (312) 896-2050
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