March soybeans were trading up 7 3/4 cents late in the overnight session. China futures closed down 0.5% overnight, and Malaysia palm oil futures closed up 0.7% on the session. Equity markets in Southeast Asia were weaker overnight but on the week they managed to post minor gains. Indian stocks were higher while European stocks this morning were showing a positive track off hopes of something positive from US payroll figures. In early action, US equity markets were simply waffling around both sides of unchanged early in the Friday US trading session. The US Dollar has started out weaker against the Euro, and it was also weak versus the rest of the currencies. Overnight the markets saw generally disappointing Euro zone economic readings, with a record high jobless figure potentially rekindling concerns of further Euro zone problems ahead. In looking ahead, the markets probably see the US non farm payroll report as the key event of the session today, with expectations calling for a number good enough to foster further US recovery talk. However, it is also clear that many markets are already looking ahead to European and US debt supply flows next week. Deliveries for January soybeans were 342 contracts this morning with 33 meal and 930 oil delivered. The forecast for rain amounts next week in Argentina have been reduced from what was in the forecast yesterday, and this helped to spark a bounce overnight. Outside market forces are quiet as traders await US employment news. March soybeans closed sharply lower on the session yesterday and pushed back down into last week's range. The enhanced forecast for rain for next week in Argentina plus a surge higher in the US dollar sparked a selling trend early yesterday, and the market was down more than 20 cents on the day into the mid-session. New weather models showing near 100% coverage of measurable rain in Argentina next week, and fears that the forecast could turn even more bearish over the weekend helped to spark a long liquidation selling trend to drive the market sharply lower. Officials from the key producing state of Parana in Brazil pegged the soybean crop this year at 12.73 million tonnes, which was down from a December forecast of 14.12 million tonnes due to dry weather. Brazil's Rio Grande do Sul state sees corn output cut by 25% and soybean output down 4% due to drought. China traders see firm demand for soybean oil and pork into the Lunar New Year, which is expected to lend support. There are rumors that China bought 3-5 cargoes of US soybeans yesterday, which may have added to the positive tone overnight. India meal exports for December came in at 798,041 tonnes from 498,000 tonnes in November. Trade estimates for next week's final crop production and stocks reports should begin to emerge and could impact prices in the next few sessions.
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