MUMBAI (Commodity Online): The sliding U.S. dollar and harvest delays served as a formidable duo to send CBOT soybean futures rallying to 7-week highs Wednesday.
Commodity-wide buying took place Wednesday, with crude oil rising above $81 a barrel and the U.S. dollar taking out its recent lows uncovering fresh speculative based buying, said Mike Zuzolo, president Global Commodity Analytics and Consulting.
The outside markets were a dominant influence on prices, with wet, cool weather expected to further delay the 2009 U.S. soy harvest providing some fundamental justification for the price gains. “Weather model updates indicate that once the rains start in the Midwest Thursday and Friday, it’s going to be very difficult for the central and eastern corn-belt to return to the fields between this weekend and the 30th of October,” Zuzolo said.
Trade sitting at the comfort of home. Start with a mere 50$Technically- inspired buying was featured as well, with advances accelerating once pre-placed buy orders were activated as nearby contracts pierced through resistance at the psychological $10.00 per bushel level.
CBOT November soybeans finished 26 cents higher at $10.08 1/2 per bushel, and Jan soybeans ended 24 1/2 cents higher at $10.09 3/4.
Courtesy: CBE Group
