In The News - 12/07/2005
Malaysian
crude palm oil futures
stayed higher in late trade on Friday on expectations that lower production for
June would trim stocks.
At the close, the benchmark third-month crude palm oil contract on Bursa Malaysia, September <KPOU5>, was up 6 ringgit at 1,417 ringgit ($372.89) a tonne. It traded a 1,412 to 1,423 ringgit range on the day.
Other
traded contracts <0#KPO:> also ended up.
"There is fear now that the June production could be much lower than what we thought, so this means the stocks could also be much lower so no one wants to go too short on their position," said a trader.
Soybean
futures at the Chicago Board of Trade closed higher on Monday, with support
stemming from weather forecasts indicating some of the drier areas of the
eastern U.S. Midwest may not get much rain, traders said.
Soy
closed 6 to 15-1/2 cents per bushel higher. July <SN5> was up 12-1/2 at
$6.88 per bushel. New-crop November <SX5> was up 13-1/2 at $7.01-1/2.
"The
southern areas of the belt are to get some pretty good moisture and the northern
areas won't do nearly as well. None of them will get enough to offset the soil
moisture shortages we've had since May 1," said Dale Gustafson, an analyst
for Citigroup.
Meteorlogix
weather service said rain associated with former Hurricane Dennis would likely
get into the southern part of the eastern Midwest, with possible flooding.
Clouds and showers would probably move into the central areas as well, but would
not be as heavy.
Clouds
and showers will keep temperatures under control in the eastern Midwest, while
it may be hotter in the western Midwest, Meteorlogix said.
Dry
weather has been stressing the soy crop in the east, especially in top producer
Illinois.
Traders
expected the U.S. Agriculture Department late Monday to show a decline of 2 to 4
percentage points in the good to excellent condition ratings for the U.S.
soybean crop.
Position-squaring
was noted ahead of the release early Tuesday of USDA's July crop production and
supply/demand reports.
An
average of analysts' estimates pegged 2005 U.S. soy production at 2.842 billion
bushels, below the USDA forecast in June for 2.895 billion and well below last
year's record large 3.141 billion.
Exports
were quiet over the weekend. USDA early Monday said 6.1 million bushels of soy
were inspected for export last week, within the range of estimates for 4 million
to 8 million.
Deliveries
on the July contract remained heavy at 1,110 lots and there was scattered
stopping of the soy.
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