Soybeans took a break from their recent uptrend on Thursday to close down 8 cents in the March contract. Monday Dec 31st is first notice day for Jan beans so traders have switched positions to March. Volumes were decent despite generally lighter holiday type trade. The CBOT reported 152,687 Soybeans, 61,868 Soybean oil and 58,068 Soybean Meal traded Thursday. Funds were sellers of an estimated 3,000 Soybeans, 2,000 Meal and 3,000 Oil.
Early opening calls are higher. In overnight trading Soybeans are 11 ½ cents higher, Meal $3.00 higher and March Oil 33 higher as the uptrend continues. Some traders say that the vegoil market is keeping pace with Crude Oil which was sharply higher in the wake of the assassination of former Pakistani Prime Minister Benazir Bhutto. Crude oil is higher again this morning in the Feb contract up 81 cents within 69 cents of contract highs. Overnight Malaysian Palm Oil future extended gains rising almost 1% again into new record highs once again. Palm Oil prices have risen more than 57% so far this year and Soybean Oil prices are approximately 68% higher. Traders say strong Soy Oil demand should continue in China, ahead of the Chinese New Year. A Chinese Government think tank CNGOI expects Soyoil demand to continue ahead of the New Year. Heavy imports are seen to be pressuring meal prices as weak demand from feed mills has already resulted in large stockpiles. Weekly Export sales figures released today show 760,100 MT. of soybeans (old-crop/new-crop) sold for export last week, near the low end of a range of estimates for 700,000 to 900,000 Mt. 78,200 Mt.of soymeal (old-crop/new-crop) sold for export last week, below the range of estimates for 100,000 to 150,000 MT. and 13,200 MT. of soyoil (old-crop) sold for export last week, within the range of estimates for 10,000 to 20,000 MT. Overnight Chinese Soybeans, and Oil closed higher, Meal lower.
Early Opening Calls: Beans 10-12c better, Meal $2.00 to $4.00 higher, Oil .20 to .40 higher.
Top News
**USDA Soybeans 07/08 Export Sales Net: 683,100 mt; 08/09 Net: 77,000 mt; expected 600-700k mt
**USDA Soybean Meal 07/08 Export Sales Net: 73,300 mt; 08/09 Export Sales Net: 5,000 mt; expected 100-150k
**USDA Soybean Oil 07/08 Export Sales Net: 13,200 mt; 08/09 Export Sales Net: None mt; expected 10k-25k
-- Total oilseed plantings in India during the Oct - Dec period are estimated at 8.19 mln ha
vs 9.04 mln ha in the same period year ago
-- Rapeseed plantings in India during the Oct - Dec period are estimated at 5.95 mln ha vs
6.53 mln ha in the same period year ago
--Indonesia based Astra Agro said 3 firms bought 6,500 mt of CPO in its auction on Friday
-- Dalian Sept Soybean futures fell 8 yuan to settle at 4686 yuan/mt; Soymeal Sept contract finished off 11 at 3389 yuan/mt; May Soyoil futures were off 22 yuan at 9354 yuan/mt
-- Malaysian palm oil March futures contract rose $9.00 to $941/mt in overnight trade
-- eCBOT Soybean Vol. 104,647; Pit Vol. 36,671; Open Interest Change: -6,408
-- Weather: 6-10 Day Forecast: Above Normal Temps. Normal to Below Precip.
-- Outside markets: Energy Complex +.20 at $96.82 ; Gold & Silver: + 4.0 at $ $836 & +.045 at $14.87; US $ is lower vs. Yen and sharply lower vs. Euro
Cash Markets
--CIF Soybeans steady off 2 . LH Dec. +?? to +38, Jan. +34 to +40, Feb. +27 to +33, Mar. +25 to +40, Apr. +28 to +33,
May +30 to +40, June +33 to +38.
Nate Smith
SMS Brokerage
nsmith@jerrygulke.com
toll free: (877) 787-6278
local: (312) 896-2090
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