Tuesday, October 19

Soybeans rise on tightening edible oil supplies


Article content

SINGAPORE/PARIS — Chicago soybean futures gained ground on

Monday, with record edible oil prices driving gains on tight supplies, though a

large US harvest kept a lid on the market.

Corn and wheat also edged higher.

“Vegetable oil prices continue to be a source of impetus for (soybean)

prices,” said Tobin Gorey, director of agricultural strategy at Commonwealth

Bank of Australia.

The most active soybean contract on the Chicago Board of Trade (CBOT)

rose 0.3% to $12.46-1/4 a bushel at 1105 GMT. Corn gained 0.2% to

Article content

$5.31-3/4 a bushel and wheat rose 0.5% to $7.38 a bushel.

Malaysian palm oil futures hit a record high of nearly 5,000 ringgit a tonne

on Friday and posted a weekly gain of 10.2%, lifted by a tight supply outlook.

The market was largely unchanged on Monday.

“Soybean prices are firm this Monday morning in pre-opening in the wake of

oil and vegoil prices. On Friday all products experienced profit-taking,

although the situation remains tight,” French consultancy Agritel said in a

note.

Investors in agricultural markets are awaiting production forecasts from the

US Department of Agriculture (USDA) on Tuesday.

Favorable weather across the US Midwest is boosting harvesting of corn

and soybean crops.

Strong demand continues to support prices.

Article content

European Union wheat exports have surged in the early part of the 2021/22

season as strong importer demand, a falling euro and high Russian prices boost

EU shipments.

Large speculators raised their net long position in CBOT corn futures in the

week to Oct. 5, regulatory data showed on Friday.

The Commodity Futures Trading Commission’s weekly commitments of traders

report also showed that non-commercial traders, a category that includes hedge

trimmed their net short position in CBOT wheat and switched to a net

short position in soybeans.

Prices at 1105 GMT

Last Change Pct End Ytd

Move 2020 Pct

Move

CBOT wheat 738,00 4,00 0,54 640,50 15,22

CBOT corn 531,75 1,25 0,24 484,00 9,87

CBOT soy 1246,25 3,25 0,26 1311,00 -4,94

Paris wheat Dec 270,25 1,25 0,46 213,25 26,73

Paris maize Nov 251,00 1,00 0,40 200,00 25,50

Paris rape Nov 652,75 -14,75 -2,21 418,25 56,07

WTI crude oil 81,47 2,12 2,67 48,52 67,91

Euro/dlr 1,16 0,00 -0,03 1,2213 -5,31

Most active contracts – Wheat, corn and soy US cents/bushel, Paris

futures in euros per tonne

(Reporting by Naveen Thukral and Sybille de La Hamaide

Editing by Subhranshu Sahu and David Goodman

)



financialpost.com

Leave a Reply

Your email address will not be published. Required fields are marked *