Soybean market to shoot higher
A stronger overnight trade along with a lot of bullish news items, the CME Group soybean market is set up for a sharply higher trade Monday.
The Early Calls for the commodities on Monday, March 26, 2012, are mostly higher.
Corn is seen opening 1-2 cents higher, soybeans 10-12 cents higher and wheat steady-to-higher.
In overnight trading, the July corn futures contract traded 1/2 of a cent higher at $6.45 per bushel. July soybean futures traded 12 cents higher at $13.83 3/4 per bushel, and July wheat traded steady at $6.64 1/2. For July soybean meal futures, the contract traded $3.50 per short ton higher at $377.40. July soybean oil futures traded $0.31 higher at $55.60.
The outside markets are mostly favorable for Monday's grain trade. The real factors driving the calls will be the higher soybean overnight markets.
Here are just a few supportive soybean news items from the Dow Jones Newswire Monday:
--Brazil's AgRural agency drops its Brazil 2011-12 soybean production estimate by 1.9% to 66.68 mmt.
--China 2011-12 soybean imports will be between 55-58.0 mmt, above 52.0 last year, Cofco Corp., a China state grain trader says.
--Oil World estimates global soybean output to fall by 22-23.0 mmt this year.
--China corn deficit to reach 17.0 mmt per year by 2020.
--Soybean prices are projected to go over $14 soon.