July soybeans were trading 7 1/4 cents lower late in the overnight session. China futures were closed today for holiday. Palm oil futures in Malaysia closed down 1% overnight. Equity markets in Asia were higher off the hope for US Fed easing, but there were also some market closures due to holiday in the region. European markets were able to initially discount lingering Euro zone debt fears, but those markets fell back into negative territory in the wake of a negative Spanish GDP reading, which in turn came on the back of a very high Spanish unemployment rate last week. US stock markets were showing some initial weakness this morning, as the fear toward Europe and concerns of a soft US Non farm payroll reading at the end of this week has left many investors concerned. News of much larger than expected deliveries against the May contract, a firm dollar, a closed China futures market and ideas that the market is extremely overbought were all seen as reasons for the lower trade overnight. There were 752 deliveries against May soybeans, 3392 contracts for May soybean oil and zero for May soybean meal. Traders see planted acreage near 10-12% complete for the weekly update for release after the close. Indonesia will push up the export tax for palm oil to 19.5% in May from 18% in April. July soybeans surged higher on Friday and traded to the highest level since July of 2008 and traded above $15 for part of the session. The market rallied to a new contract high, as continued buying from China, strong cash basis levels, talk of no deliveries for May soybeans and continued concerns for the crop size in South America provided the fuel to run higher. May soybeans have traded as much as 12 3/4 cents lower overnight after the surprise deliveries. Sharply higher trade in corn added to the bullish tone early in Friday. Private exporters reported to the USDA the sale of 110,000 tonnes of US soybeans to China and 116,000 tonnes of US soybeans to unknown destination for the 2012/13 season. The weather is turning a bit wetter for the two week outlook, which could slow planting progress, but it is also seen as a benefit to growing conditions for the coming season. July soybeans ended the week with a gain of more than 3.0% and a new contact high close. The Commitments of Traders reports as of April 24th for Soybeans showed Non-Commercial traders were net long a record high 247,932 contracts, an increase of 3,774 for the week. Non-Commercial and Nonreportable combined traders held a record high net long position of 206,758 contracts, up 3,701. Commodity Index traders held a net long of 150,551 contracts, up 2,165. For meal, Non-Commercial traders were net long a record high 107,225 contracts, up 7,394 for the week. Non-Commercial and Nonreportable combined traders held a record net long position of 128,591 contracts, up 6,892. Both soybeans and meal show a positive buying trend but have reached overbought status. For Soybean Oil, Non-Commercial traders were net long 48,976 contracts, down 5,507 for the week and the selling trend is seen as a short-term negative force. Commodity Index traders were net long 102,591 contracts, up 1,322.
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