February 28, 2012
US soy futures hit five-month high
US soy futures reach to new five-month highs boosted by technical buying and strong underlying export demand.
The soy market is in the midst of a bullish uptrend a feature attracting buyers in the absence of bearish news.
Export demand continue to fuel positive momentum with the uncertainty of South American production and weakness in the US dollar serving as supportive influences on prices says Chad Henderson analyst with Prime Ag Consultants.
The need for soy prices to remain competitive with corn and cotton to secure enough 2012 acres to maintain adequate supplies buoyed prices as well. CBOT March soy ended up US$0.04 1/2 to US$12.76 3/4/bushel.
US corn futures end mixed with near term contracts rising on export demand while deferred months slide on fresh planting forecasts.
Export sales to China and unknown destinations helped nearby corn futures as near term supplies remain tight traders say.
CBOT March corn ends up US$0.01 1/4 at US$6.39 1/2 per bushel while December falls to a one-month low and finishes down US$0.05 3/4c at US$5.58 3/4.
US wheat futures end lower with losses led by Minneapolis futures amid expectations for increased acreage.
The USDA projects 2012 wheat acreage of 58 million up from a baseline estimate of 56.5 million. While traders already knew of a hard red winter wheat increase the USDA notes spring acres traded in Minneapolis will increase as well.
Meanwhile demand is lacklustre and global supplies are ample. MGEX March wheat ends down US$0.17 1/4 at US$8.01/bushel while CBOT March drops US$0.02 3/4 to US$6.41 3/4 and KCBT March falls US$0.05 to US$6.80.
US soy product futures end mixed with soymeal garnering support from traders taking profits on long soyoil/short soymeal spreads.
The markets consolidated from recent spreading action as traders shed risk before the end of the month analysts say.
CBOT March soymeal ended up US$1.60 to US$332.90/short tonne and March soyoil finished down US$0.02 to US$0.54.20/lb.
