US soy up slightly on planting delays, strong demand

US soy futures rose nearly one percent on Friday (June 19), gaining for the fourth straight session as steady exports and planting delays supported the market amid renewed hopes over the economy.

 

Soy were supported by stronger-than-expected US exports, which could further tighten old-crop supplies, now estimated at 110 million bushels or less than two weeks' supply on August 31.

 

Soy exports were 250,700 tonnes in the latest reporting week, compared with analysts' expectation of 50,000 to 250,000 tonnes.

 

Adding to that bullish tone is rains is the Midwest that are frustrating farmers in areas east of the Mississippi River who need to finish soy planting.

 

The key crop states of Illinois and Indiana, which together grow a quarter of the US soy crop, have some 1.3 million hectares of soy yet to seed - about 23 percent of their planned acreage. Usually, more than 90 percent of the acreage is planted by this time.

 

Chicago Board of Trade July soy rose 0.9 percent US$12.24-½ a bushel.

 

China's Dalian soy futures which typically track benchmark CBOT futures fell on Friday (June 19) as the market was under pressure from talk that the government was likely to release its stockpiles into the market.

 

While July wheat rose half a percent to US$5.63-1/4, corn gained 0.7 percent to US$4.06-¼ a bushel.

 

Analysts expect the wheat market to come under pressure from harvest, but poor yields in some areas and rising soybean prices will limit losses.

 

Harvesting in the top US wheat-growing state of Kansas was accelerating amid hot and dry weather, but yields were reported low, under 30 bushels an acre, in many south-central areas of the state.