MUMBAI (Commodity Online): Soybean futures on CBOT ended higher Monday, rallying on broad-based speculative buying in commodities amid weakness in the U.S. dollar.
Investment money flowed into the commodity sector Monday, as investors exiting the U.S. dollar looked to hard assets like commodities for their upward potential due to inflationary signals, analysts say.
The U.S. dollar index fell to its lowest level since August 2008, and with gold futures rising to record highs, crude oil, grains and oilseed futures all followed that lead.
The market also gathered fundamental support, with strong demand and the potential for wet Midwest weather to slow the final leg of the U.S. soybean harvest adding strength, says Tim Hannagan, analyst with P.F.G. Best in Chicago.
Technical buying played a key role in the gains as well, with pre placed buy orders accelerating advances once the most active January contract climbed above the $10.00 level and Friday’s highs. CBOT Jan soybeans ended 23 cents higher at $10.10, and March soybeans settled 23 1/2 cents higher at $10.15 3/4.
Courtesy: CBE Group
