Soya soars September 20, 2013

September 20, 2013


Chicago Board of Trade soya futures rose for the first time in four sessions on Wednesday on bargain buying a day after the benchmark November contract fell to a three-week low, and as worries about tight US supplies lingered. Corn and wheat also firmed, rallying near the closing bell on a drop in the value of the US dollar after the Federal Reserve surprised investors by deciding to continue its massive stimulus program. The move buoyed Wall Street and lifted gold and crude oil values as well.

“It gave us a little boost. The whole commodity patch traded higher and there was so little going on in grains, they got caught up in the tailwind,” said Rich Feltes, vice president for research with R.J. O’Brien. The grain trade was subdued as brokers awaited more yield and quality data from the start of the US corn and soya harvest.

At the CBOT, November soyabeans settled up 5-1/4 cents at $13.47-3/4 per bushel. December corn ended up 2-1/4 cents at $4.56-1/4 a bushel and December wheat was up 3-1/2 cents at $6.46-1/2 a bushel. “Today there is a void of fresh news. We are seeing a bit of consolidation, and that’s the name of the game in very thin volume,” said Karl Setzer, analyst with the MaxYield Co-operative in West Bend, Iowa.

Gains in soyabeans were led by deferred contracts on concerns that a late-summer dry spell in the Midwest could hurt 2013 yield prospects, keeping supplies tight throughout the 2013/14 marketing year that began September 1. The US Department of Agriculture last week slashed its forecast of 2013/14 US soyabean ending stocks to 150 million bushels, from 220 million in August.

“The soya complex, from here through the remainder of the marketing year, is going to be hypersensitive to anything that can impact stocks. That is why funds are sitting on a huge long position in soyabeans,” Setzer said. However, gains were limited because rains have been falling in parts of the Midwest this week. The showers arrived too late to help most crops but could bolster late-planted soyabeans in a few areas.

“Some of the dry area is going to receive at least some rain, and maybe there are some green beans left out there that can still benefit,” said Dan Cekander, analyst with Newedge USA in Chicago. Confirmation of a large US soyabean sale to China offered minimal support to the market. The USDA on Tuesday said private exporters reported sales of 2.112 million tons of US soyabeans, with most earmarked for China for delivery in 2013/14. The remainder was sold to unknown destinations. Courtesy Reuters

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