Mumbai, May 14, (Commoditiescontrol): CBOT July soyoil futures have seen a second consecutive day of gains, settling at 45.15 cents per pound. This upward momentum is fueled by a combination of spread trading activities and growing concerns over the potential impact of floods on Brazil's soybean crop.
CBOT soybean futures for July delivery also experienced a slight increase, closing at $12.19-1/2 per bushel. Conversely, CBOT July soymeal futures declined by $5.40, settling at $366.50 per short ton.
The rise in soyoil futures is largely attributed to anxieties surrounding flood damage in southern Brazil, a major soybean-producing region. This potential supply disruption has significantly influenced market sentiment, driving prices higher. Additionally, the weekly Crop Progress report from NASS revealed that the US soybean crop is 35% planted, lagging behind last year's pace.
Funds were net buyers of soybeans and soy oil with 3500 and 3000 contracts respectively and net sellers of soymeal with 3000 contracts.
ICE canola futures have reached a five-month high, propelled by the strength in allied vegetable oil markets, including U.S. soy oil and Malaysian palm oil futures.
Palm oil futures on the Bursa Malaysia Derivatives Exchange also saw gains, rising 1.71% to 3,867 ringgit ($816.18) a metric ton.
The EuroNext commodities exchange reported that the futures contract for August 2024 settled at Euro 484.75 per metric ton, marking an absolute change of 2.75 euros.
Dalian also witnessed a rise in soy oil and palm oil contracts, increasing by 1.18% and 1.12% respectively.
The recent upward movement in CBOT soyoil futures is due to short covering trigered by concerns about disruption supplies in Argentina due to strike ,adverse weather condition in Brazil and expectation of US govement imposing tarrif on imports of used cooking oil from China. But this rally is unlikely to sustai given the forecast of increase in global soybean supplies and seasonal increase on palm oil stock in coming months.CBOT July soy oil may face resistance at 46-47 cents/lb.
(By Commoditiescontrol Bureau; +91-9820130172)
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