MUMBAI (Commodity Online): Soybean futures climbed to one-week highs on crop concerns and outside market influences on Tuesday.
The recovery of outside markets from early weakness, concerns about private crop estimates, fresh speculative money flowing into the market and worries about crop losses in the Delta served as catalysts to keep prices building, analysts said.
Lingering fears of field losses and quality issues as a result of heavy rains and floods in southern U.S. crop areas has sparked enough concern to justify speculative buying interest, said Jack Scoville, analyst with Price Futures Group.
Trade commodities or equities from across the globe. Join Now“There is too much uncertainty surrounding the 2009 U.S. soybean crop with nothing to compare it to for traders to extract risk premium from prices,” a cash-connected floor analyst said.
Tight nearby supplies and the realization that newly harvested supplies will not flood the pipeline, but head straight to export channels provided support, as interior markets continue to scramble for available supplies, Scoville added.
However, warm, dry near-term weather favorable for active field work this week applied modest pressure to cap upside movement. November soybeans finished 9 ¼ cents higher at $10.06 3/4 per bushel, and January soybeans ended 12 1/2 cents higher at $10.10 1/2.
Courtesy: CBE Group
