20000212

CBOT soyameal surges, ends at 19-month high, soyaoil up

CHICAGO: Soyameal futures at the Chicago Board of Trade surged late to end firmly higher on Thursday, with spot positions finishing at a 19-month high amid strength in soyabean and corn prices.

Soyaoil also ended higher with support from export data.

Soyameal settled $2.90 to $4.60 per ton higher, with March up $4.60 at $167, the highest close for a spot CBOT meal contract since $190.80 on July 22, 1998. Soyaoil settled 0.14 to 0.25 cent per lb higher, with March up 0.18 at 15.97 cents.

Commodity funds were prominent buyers in the soyameal pit near the close, and gains accelerated after the March contract pushed above the $165 area.

But the primary source of meal's strength came from corn and soyabean markets, with soyabeans jumping more than 8 cents a bushel and corn rising 2 cents or more following stronger than expected export data.

The US Department of Agriculture's weekly export sales report, released on Thursday, listed net US soyabean sales for the week ended Feb. 3 at 951,600 tonnes, more than twice the previous week and the four-week average.

US soyabean sales commitments for the 1999/2000 marketing year through Feb. 3 are running almost 12 percent above a year ago, according to the USDA, indicating smaller available stocks of soyabeans for crushing into meal in the United States.

Cash meal values in the US were steady to $2 per ton higher Thursday, supported by slow farmer selling that has processor soyabean supplies dwindling, cash sources said.

The USDA said net US meal sales for the week ended Feb. 3 totalled 134,800 tonnes, down 45 percent from the previous week and down 6 percent from the four-week average, but within expectations for 100,000 to 200,000 tonnes. The USDA placed net US soyaoil sales for the week ended Feb. 3 at 8,500 tonnes, double the previous week and above expectations for zero to 10,000 tonnes.

Business may be brewing this month from Asian markets, traders said. "Pakistan is expected to tender for about 40,000 tonnes of soyabean oil this month as domestic cotton oil production declines," said Jack Scoville, a trader with Price Futures Group, in a report on Thursday.

In the trading pits, Commercial Grain bought 200 March meal contracts and 200 May, Iowa Grain bought 20 March and 100 July and sold 200 May and Rand Financial Services and Prudential Securities sold 200 March each, traders said.

In soyaoil, Term Commodities bought 400 March, ADM Investor Services bought 400 March and sold 200 May and Rosenthal Collins bought 200 March. Cargill bought 300 March near the close. Soyameal volume during Thursday pit session was estimated by the CBOT at 20,000 contracts, compared to 21,538 Wednesday.

Soyaoil volume was estimated at 15,000 contracts, compared to 22,190 Wednesday.-Reuters