RSS
Twitter
Linked In
News In
Markets
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Morning markets: palm and soy reach fresh peaks

Twitter Linkedin eCard

Palm oil and soybeans began a new week with an old attitude – to make rapid headway amid talk of dwindling stocks and robust demand.

Bullish investors in both crops, which are major feedstocks for vegetable oil processors, fed off each others' optimism.

Palm oil was helped higher by Friday's strong close for soybeans, after strong US export data and further cuts to estimates for Argentina's soybean crop.

July palm oil had surged 147 ringgit, or 6.0%, to 2,595 ringgit a tonne by 07:30 GMT on Bursa Malaysia on decent volume, the highest for a benchmark contract since August.

'Supply driven'

Meanwhile, palm's strong performance helped soybeans to a fresh seven-month high. Chicago soybeans for May delivery were 2.3% higher at $11.26 ¾ a bushel, the highest for a leading contract since September 26.

More distant contracts lagged, but still showed some potential in the new crop. November beans adding 1.8% to $9.89 a bushel, the highest for this contract since January.

"The soya and palm rally is all supply driven," a Kuala Lumper trader told Reuters, the news agency.

"There is very standard demand but less supply of vegoils."

The next key marker on palm oil supply will come next Monday, with data on Malaysian stocks.

Toby Hassall, at Commodity Warrants Australia, said: "It's the same story for soybeans, strong demand for US soy out of China and dwindling stockpiles."

Planting progress

However, it was a different story for corn and wheat, which fell on rumours of strong progress in US plantings, although this has yet to be confirmed by the weekly official data.

May wheat was 7 cents lower at $5.50 ¼ a bushel, with more distant contracts showing smaller losses. September wheat was 3.5 cents down at $5.93 a bushel.

Corn showed a similar pattern, with May down 3.25 cents at $4.03 a bushel, while September stood 1.5 cents lower at $4.21 a bushel.

Stimulus from external markets was limited by holidays in many countries, including Japan and the UK.

Oil added a little on the fat gains made on Friday, with New York crude for June up 10 cents at $53.50 a barrel and Brent 33 cents higher at $53.18 a barrel.

Twitter Linkedin eCard
Related Stories

Glencore Agri manages 'resilient performance when compared to many peers'

... says Glencore, with strong Australian and Russian export market helping offset rapeseed crush setbacks and "limited arbitrage opportunities"

Morning markets: Cotton futures extend gains, while wheat falls further

Hopes of fresh US export orders prolong a rebound in cotton prices. But Plains rains dampen the enthusiasm of wheat bulls

Morning round-up, Wednesday February 21

Gasc wheat tender... a2 shares soar on profits rise, Fonterra deal... Arla Foods profits ease...

Evening markets: Wheat futures dip despite looming EU cold. Cotton climbs

... while soymeal sets a fresh 19-month high, only to lose most of its gains in late deals. Soybean futures hit an 11-month high
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069