Post by Trade Coach on May 12, 2014 2:38:21 GMT 1
US soyabean futures rebounded from three days of losses on Thursday and rose more than 1 percent in a technical and short-covering bounce and corn firmed as investors squared positions ahead of a monthly crop report scheduled for release on Friday. Wheat futures retreated on profit-taking after hitting a 13-month high earlier in the week and as beneficial rains moved across the US wheat belt.
Attention was turning to Friday's monthly US Department of Agriculture crop production and supply and demand reports, which will include the government's first winter-wheat production forecasts of the season and might show a further tightening of US soyabean stocks. "A lot of the action today in beans is just shorts getting out of the market ahead of Friday's report," said Rich Nelson, chief strategist with Allendale Inc.
Chicago Board of Trade July soyabeans jumped 23-1/4 cents, or 1.6 percent, to $14.69-1/2 per bushel after hitting a one-month low the previous day. The contract tested technical support around $14.40 earlier this week but was unable to break that level. Persistent global demand for soyabeans also underpinned the market. US soyabean export demand has slowed seasonally as more South American new-crop beans are available, but there have so far been few cancellations of US sales despite very tight supplies.
Meanwhile, Chinese customs data on Thursday revealed that soyabean imports in April were a larger-than-expected 6.5 million tonnes, although analysts noted that shipments to the world's top importer should begin to slow. "All the cargoes that Chinese importers booked aggressively in the past months are arriving now, which is supporting prices, but this is also creating a glut of beans," said Vanessa Tan, investment analyst at Phillip Futures.
"Going forward, let's say from June onwards, imports should start declining as importers are slowing down." Chicago wheat prices eased on improved weather in key US winter wheat areas and as traders exited long positions ahead of Friday's USDA report. "The specs are big-time longs in the wheat market, so it's understandable ahead of first crop-size report of the season in winter wheat, and after the (price) run we have had, it's understandable to get a consolidation, a bit of profit-taking," said Tom Fritz, a partner at EFG Group in Chicago. CBOT July wheat fell 2-1/2 cents, or 0.3 percent, to $7.35-1/4 per bushel. July corn gained 2-1/2 cents, or 0.5 percent, to $5.16-1/2 a bushel.
Source: www.brecorder.com/agriculture-a-allied/183/1181315/
Attention was turning to Friday's monthly US Department of Agriculture crop production and supply and demand reports, which will include the government's first winter-wheat production forecasts of the season and might show a further tightening of US soyabean stocks. "A lot of the action today in beans is just shorts getting out of the market ahead of Friday's report," said Rich Nelson, chief strategist with Allendale Inc.
Chicago Board of Trade July soyabeans jumped 23-1/4 cents, or 1.6 percent, to $14.69-1/2 per bushel after hitting a one-month low the previous day. The contract tested technical support around $14.40 earlier this week but was unable to break that level. Persistent global demand for soyabeans also underpinned the market. US soyabean export demand has slowed seasonally as more South American new-crop beans are available, but there have so far been few cancellations of US sales despite very tight supplies.
Meanwhile, Chinese customs data on Thursday revealed that soyabean imports in April were a larger-than-expected 6.5 million tonnes, although analysts noted that shipments to the world's top importer should begin to slow. "All the cargoes that Chinese importers booked aggressively in the past months are arriving now, which is supporting prices, but this is also creating a glut of beans," said Vanessa Tan, investment analyst at Phillip Futures.
"Going forward, let's say from June onwards, imports should start declining as importers are slowing down." Chicago wheat prices eased on improved weather in key US winter wheat areas and as traders exited long positions ahead of Friday's USDA report. "The specs are big-time longs in the wheat market, so it's understandable ahead of first crop-size report of the season in winter wheat, and after the (price) run we have had, it's understandable to get a consolidation, a bit of profit-taking," said Tom Fritz, a partner at EFG Group in Chicago. CBOT July wheat fell 2-1/2 cents, or 0.3 percent, to $7.35-1/4 per bushel. July corn gained 2-1/2 cents, or 0.5 percent, to $5.16-1/2 a bushel.
Source: www.brecorder.com/agriculture-a-allied/183/1181315/