Mumbai, May 8, (Commoditiescontrol): CBOT July soyoil ended lower on Thursday, down 1.150 cents at 42.64 cents per pound, while CBOT July soymeal settled $5.60 down at $372.90 per short ton, as market participants prepared for potentially bearish data from the U.S. Department of Agriculture's forthcoming supply/demand report.
Hedgers/fund managers were also inclined towards reducing their market participation. Market sentiment data from May 8th indicated net selling activity for soybeans, soymeal, and soy oil, with figures standing at 6000, 2000, and 3500, respectively.
Though the most-active soybean contract ended lower for a third straight day, futures did see some support from news of ongoing flooding in southern Brazil and strike activity in Argentina, market analysts said. CBOT July soybean futures settled 19-1/4 cents lower at $12.08-1/2 per bushel.
ICE canola futures experienced a decline, attributed to the downward pressure from plummeting soy oil and soymeal prices, alongside favorable Canadian rainfall and projections of ample canola ending stocks. The most-active July canola fell $5.40 to settle at $651.30 per metric ton.
During the midday session, the benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange exhibited a significant decrease of 39 ringgit, or 1.01%, settling at 3,830 ringgit per metric ton.
Dalian's primary soy oil contract registered a decrease of 1.36%, while its palm oil counterpart experienced a loss of 1.73%. Conversely, CBOT soy oil prices are down by 0.16.
Furthermore, the EuroNext commodities exchange reported the futures contract for August 2024 settling at Euro 475.75 per metric ton, marking an absolute change of -4.75 euros.
Traders expect WASDE data on Friday to increase the 23/24 soybean carryout estimate to 341 mbu, up 1 mbu from April. New crop ending stocks are projected at 439 mbu, with production at 4.449 bbu. Globally, old crop stocks are seen at 112.8 MMT (down 1.4 MMT), while new crop carryout is estimated at 119.3 MMT.
Considering ample global supplies of oil and oilseeds, along with declining consumption of soyoil as a biodiesel feedstock (the main driver of the recent soybean rally), prices are likely to continue their downward trend. However, the decline in Argentine supply due to strikes may provide some price support.
(By Commoditiescontrol Bureau; +91-9820130172)
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