Chicago | Reuters — U.S. soybean futures rose about one per cent on Tuesday as soymeal futures soared on expectations of rising demand for the high-protein feed ingredient, analysts said.
Chicago Board of Trade soymeal futures gained sharply against soyoil futures on meal/oil spreading, with soyoil falling to six-month lows on expectations that U.S. oil stocks were rising and global vegetable oil markets cooled.
CBOT corn futures followed soybeans higher while wheat was choppy in range-bound trade.
CBOT January soybeans settled up 15-1/2 cents, or 1.2 per cent, at $12.59-1/2 a bushel, while January soymeal ended up $14.80, or 4.1 per cent, at $376.90 per short ton (all figures US$). CBOT January soyoil finished down 1.11 cents, or 2.1 per cent, at 52.24 cents/lb. after dipping to 52.01 cents, its lowest since June 18.
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The CBOT oilshare, which reflects soyoil’s share of value in soy products, fell to around 41 per cent from 44 per cent at the start of December and nearly 50 per cent in mid-October.
Soymeal’s resurgence in meal-oil spreads reflects brisk demand given firm U.S. cash markets and tight supplies of lysine, a cheaper alternative, as well as demand for hog feed in China, the world’s top pork consumer.
“There is a lot of spreading going on there, and a lot of feeling that with the hog herd being re-built, China is going to need some meal,” said Jack Scoville, analyst with the Price Futures Group in Chicago.
Meanwhile, soyoil futures fell in sympathy with weaker Malaysian palm oil and Euronext rapeseed futures.
Also, analysts surveyed by Reuters on average expect the National Oilseed Processors Association (NOPA) on Wednesday to report that U.S. soyoil stocks rose for a fifth straight month by the end of November, to 1.903 billion pounds, the largest total since April 2020.
CBOT March corn settled up 5-1/4 cents at $5.90-1/4 a bushel, following soybeans higher. March wheat fell 1-3/4 cents to end at $7.87 a bushel but stayed inside of Monday’s trading range, hovering above a six-week low set on Friday.
Argentina’s weather forecast in the coming months poses a “big challenge” for soybean and corn production, with lower-than-normal rainfall expected during the region’s summer, the Buenos Aires grains exchange said.
The EU’s crop monitoring service MARS said most grain crops in the European Union have continued to benefit from favourable weather in the past month, although a lack of hardiness could leave some plants vulnerable to frost.
— Reporting for Reuters by Julie Ingwersen; additional reporting by Emily Chow and Sybille de La Hamaide.
