(IBTimes) - July soybeans were trading 11 1/4 cents lower late
in the overnight session. China futures were closed today for
holiday. Palm oil futures in Malaysia were also closed. Some
equity markets in Asia remained closed for holiday, but the
Australia market was stronger off rate cut news while the Nikkei
actually forged a fresh 2 1/2 month low close. European markets
were propped up by a slightly higher start in the FTSE, but May
Day celebrations might have reduced regional activity somewhat.
US stock markets were showing a mixed early trade, with the focus
shifting back to a rather active US scheduled report slate later
today. The markets will also see a series of US Fed Speeches
today and given the increased focus on the prospect of easing,
the trade will be parsing Fed dialogue rather extensively today.
There were 757 deliveries against May soybeans this morning as
compared with 752 yesterday. Oil deliveries this morning were
2,635 as compared with 3392 contracts yesterday. There were no
meal deliveries for the second day in a row. Talk of the
overbought condition of the market and continued deliveries
against the May contract helped to pressure the market overnight.
November soybeans were down just 3 cents late in the overnight
session. Traders are beginning to position for next week's USDA
supply/demand report which is expected to show a significant
tightening of 2011/12 ending stocks due to higher exports and
increasing crush. Many traders have ending stocks down to 150-175
million bushels from 250 million last month and 275 million in
March. This will be the first look at the 2012/13 season and if
beginning stocks for the 2012/13 season slip to 150 million
bushels, the USDA task of balancing the surge in demand for US
soybeans and production for the new crop season with a set
planted acreage number from the March intentions report will be
very difficult. Traders will "assume" that sharply higher prices
will be necessary to reduce demand. The weekly Soybeans Planting
report showed that a record 12% of the crop is planted which is
right on trade expectations. This compares with 6% last week and
2% last year. The 10 year average for this time of year is 5%.
The previous highest percent complete was 9% in 2006 while the
lowest was 2% in 2011. The soybean market saw choppy trade
yesterday as soybean oil pushed sharply lower and soybean meal
saw strong gains and active new buying. Rumors that the EU will
eventually block imports of Argentina bio-fuel helped to drive
oil lower. News of more sales to China and a firm tone for corn
helped to support the market late in the day. Private exporters
reported the sale of 220,000 tonnes of US soybeans to China for
the 2012/13 season. The weekend COT report showed a record high
net long position for speculators in soybeans and meal and this
added to the "overbought condition" ideas and helped spark some
long liquidation (profit-taking) selling early in the session.
Weekly export inspections came in at 15.45 million bushels which
was well below trade expectations and compares with 11 million
necessary each week to reach the USDA projection. July meal
pushed to a new high for the move with active buying late in the
day while July oil pushed down to the lowest level since March
30th.
Original Source:
http://www.ibtimes.com/articles/335573/20120501/pre-opening-soy-complex-market-report.htm
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