Newspaper article THE JOURNAL RECORD

Surprising Export Data Boosts Soybean Futures

Newspaper article THE JOURNAL RECORD

Surprising Export Data Boosts Soybean Futures

Article excerpt

Soybean futures soared Thursday on the Chicago Board of Trade after surprisingly big export figures intensified concerns that supplies will fall to critically low levels before the next harvest.

Wheat futures also rose strongly. Coffee futures rose sharply a third day.

The Agriculture Department reported soybean meal sales last week of 209,800 tons, about 75,000 tons higher than most expectations. Soybean sales were in line with expectations, but the strength of its products again highlighted the need for strong rationing. "We're going well above the speed limit still when we should basically be trudging along," said analyst Steve Bruce at E.D. & F. Man International Futures. The USDA says soybean stocks will fall to 20-years lows of 140 million bushels by Sept. 1. That is less than three weeks' supply, raising concern supplies may be far tighter. The exports report came as a surprise. A bumper Brazilian harvest had boosted speculation foreign and domestic demand for U.S. supplies had weakened. Earlier this week, the government said it inspected far fewer soybeans for export, and the National Oilseed Processors Association said crushing operations had been reduced. But a problem at the world's largest soybean-shipping port, Paranagua, cut Brazilian exports by 7 percent and apparently forced some foreign buyers to purchase American products. The gains were even more startling in light of the fact that the exchange is closed Friday and a potentially market-moving supply and acreage report from the USDA is due early Monday. Investors usually are reluctant to buy heavily before such reports. "We need to choke demand for U.S. supplies, and we haven't done it yet," said analyst Victor Lespinasse at Dean Witter, Discover & Co. Wheat futures were boosted by expectations India will try to buy 500,000 tons of wheat in the next few days and on strong export sales. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.