October 19, 2007

 

Soyoil hits 23-year high on CBOT, brings up soy prices

 

 

Soy futures at the Chicago Board of Trade climbed to a near three-week high on Thursday, lifted by the weak US dollar and soyoil prices which climbed to a 23-year high.

 

December soyoil was up 0.76 cent to 40.99 cents per lb, after hitting 41.14 cents -- the highest price for a spot contract since 1984.

 

Soyoil tracked the rising crude oil market due to the rising amounts used to produce biodiesel. More than 80 percent of biodiesel production uses soyoil as raw ingredient.

 

A slowdown in the harvest due to heavy rains further gave support to prices while worries over the US economy continued to drive the US dollar to new lows, making US food and feed cheaper to foreign buyers.

 

November soys were up 15-1/4 cents at US$9.89-1/2 per bushel and January was up 15-1/4 at US$10.08-1/4 by 11:20 a.m. CDT (1620 GMT).

 

Funds had bought 4,000 soy contracts by the midsession. ADM Investor Services was featured buying 1,000 January, traders said.

 

Soymeal followed soys and soyoil higher, with December up US$3.30 at US$278.20 per tonne

 

Meanwhile USDA said 770,100 tonnes of soy were sold for export last week, which was within estimates for 700,000 to 900,000 tonnes. China was the biggest buyer, taking 192,100 tonnes.

 

US soymeal export sales were 100,900 tonnes, within estimates for 75,000 to 150,000 tonnes.

 

Soyoil exports exceeded expectations, reaching 26,400 tonnes, higher than the 5,000 to 15,000 tonnes expected.