Mumbai, 18 Jan (Commoditiescontrol): Chicago Board of Trade (CBOT) soyoil futures gained on Friday, driven by rising global oil prices and a cautious mood ahead of the long holiday weekend. The most active soyoil contract closed at 45.69 U.S. cents per pound, up 0.66 cents or 1.5%, but remained below the two-month high reached earlier in the week.
Traders noted that short-covering, combined with concerns over unfavorable weather in Argentina and hopes for improved U.S.-China trade relations, supported the market. CBOT March soymeal also rose $2.80, or 0.95%, to settle at $297.20 per short ton.
Soybeans extended gains following a statement from U.S. President-elect Donald Trump about a phone discussion on trade with Chinese President Xi Jinping. Persistent concerns about U.S.-China trade tensions, which have clouded the grain markets since Trump's election, remain significant. Chinese buyers have increasingly favored Brazilian soybeans due to their lower prices and uncertainty over potential U.S. tariffs.
In other vegetable oil markets, ICE canola futures rebounded from four-week lows, supported by bargain buying and strength in global vegetable oil prices. The March canola contract rose $9.20 to close at $616.00 per metric ton, despite remaining within Thursday’s volatile trading range.
Meanwhile, Malaysian crude palm oil (CPO) futures edged higher, with the benchmark April contract gaining 7 ringgit to close at 4,193 ringgit per metric ton. However, the contract saw a 4.51% weekly decline, touching a three-month low earlier in the session. Weak demand from India, the world’s largest buyer, and declines in Chinese vegetable oil markets weighed on palm oil prices.
Dalian's most active soyoil and palm oil contracts dropped by 1.17% and 0.4%, respectively, reflecting mixed sentiment in the Chinese market. In contrast, U.S. soyoil on the CBOT rose 1.08%.
Adding to the complexity, Indonesia temporarily froze subsidies for its palm oil biodiesel and replanting programs due to a reorganization of its palm oil fund agency. Officials aim to address the transition efficiently to minimize disruptions.
U.S. markets and government offices will remain closed on Monday in observance of the Martin Luther King Jr. holiday, coinciding with Trump’s inauguration. This holiday pause leaves traders evaluating global trade dynamics and weather conditions.
(By Commoditiescontrol Bureau: 09820130172)