Mumbai, May 8, (Commoditiescontrol): The Chicago Board of Trade (CBOT) reported a rise in July soy oil by 0.66 cents to 44.50 cents per pound, driven by technical buying . CBOT soybean futures, however, displayed mixed results. Nearby contracts declined due to profit-taking after recent gains and pressure from falling wheat futures. New-crop contracts gained slightly based on industry analysis.
CBOT July soybean futures dropped by 2-1/4 cents to $12.46-1/2 per bushel, and July soy meal decreased by $4.40 to $383.20 per short ton. Market data from May 6 indicated funds net selling of 2,000 contracts each for soybeans and soy meal, while soy oil saw a net purchase of 2,000 contracts.
Meanwhile, ICE canola futures continued their ascent for the fifth consecutive day, with the July contract reaching a year-high at $667.10 per metric ton. Statistics Canada reports canola stocks at 8.3 million metric tons as of March 31, 2024, up 17.5% from the previous year.
Soybean oil basis discounts have narrowed in Argentina, indicating possible supply disruptions. Seller quotes are unavailable for May, June, and July. Brazil is seeing a similar trend.
Additionally, Malaysia's benchmark palm oil contract saw an increase of 1.76%, closing at 3,930 ringgit per metric ton. EuroNext's August 2024 futures contract decreased by 3.50 euros, settling at 477.50 euros per metric ton.
Looking ahead, the market focus is on the upcoming WASDE report. U.S. soybean production is projected to reach 4.449 billion bushels, with ending stocks for the 24/25 crop estimated at 439 million bushels. Short covering in an oversold market is supporting soy oil and other vegetable oil prices, but expectations of increased soybean and canola ending stock for next marketing year in US and Canada respectively could limit significant rises in vegoils.
(By Commoditiescontrol Bureau; +91-9820130172)
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