May soybeans were trading up just 1 1/2 cents late in the overnight session after trading up as much as 8 1/2 cents. China futures closed up 0.3% overnight to near a 17-week high. Palm oil futures posted a new 8-month high on Monday and managed to gain 0.7% on the session overnight. Asian equity markets were generally higher overnight, mainly in reaction to the Greek deal but perhaps from hopes that China was moving to a more supportive policy stance. European equity markets were also higher off the news of the Greek deal but those markets were unable to hold all of the initial gains. The US equity markets are showing positive action to start but some analysts and press outlets are suggesting that the markets are under whelmed with the EU outcome. The markets will see a Chicago Fed National Activity Index release this morning and that report might be given added importance due to the lack of economic news on the docket today. It is also possible that a US Treasury auction will be seen as an important measure of the level of safe haven interest, especially in the wake of the Greek debt deal. The market continues to find support from outside market forces but the weaker US dollar is not having the normal positive push which many traders expected this morning. More rains for Argentina and rain in the forecast for Southern Brazil this week may be helping to cool down the buying support from fund traders. Talk of increased selling from US producers helped to limit the advance on Friday and traders see the current rally as a factor which is helping to pull soybeans out of producer's hands. Concerns about possible shipping delays ahead may have prompted China to buy some cargoes of US soybeans for April shipment. Traders see a line-up at the Brazil ports for export as a concern with the harvest only about 20% complete. Argentina received soaking rains over the weekend and scattered rains hit southern Brazil. The rally for canola oil has helped support soybean oil recently as traders are concerned for winterkill damage in Eastern Europe and Black Sea region and a smaller China crop. May soybeans closed 8 3/4 cents higher on the session Friday and gave back part of the strong gains with some long liquidation selling ahead of the long weekend. The market gained 36 1/4 cents for the week. News of further strong sales to China plus production uncertainties for southern Brazil helped to support the strong gains for the week. The rally pushed the market to the highest level since October 17th. Private exporters reported the sale of 2.92 million tonnes of US soybeans to China with 2.75 million for the 2012/13 season and 173,000 tonnes for this season. The US Soybean Export Council indicated that the China delegation inked agreements to buy 13.4 million tonnes of US soybeans for the week. China imported 4.61 million tonnes in January which was down 10% from last year and down 15% from December. Morocco bought 20,000 tonnes of US soybean oil for the 2011/12 season. Taiwan is tendering for 40,000-60,000 tonnes of soybeans from the US or Brazil. Libya bought 15,000 tonnes of meal from Argentina. The Commitments of Traders reports as of February 14th showed Non-Commercial traders were net long 100,178 soybean contracts, an increase of 19,431 contracts for the week and the aggressive buying trend is seen as a short-term positive force. For Soybean Meal, Non-Commercial traders were net long 731 contracts, an increase of 1,019 contracts which represents a change from a net short to net long position and somewhat positive. Non-Commercial and Nonreportable combined traders held a net long position of 9,478 contracts, up 3,235 contracts for the week and the spec buying trend is seen as positive. For Soybean Oil, Non-Commercial traders were net long 13,323 contracts, an increase of a whopping 10,903 contracts for the week and the aggressive buying trend is seen as a bullish force. Non-Commercial and Nonreportable combined traders held a net long position of 15,701 contracts, up 11,789 contracts for the week.
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