MARKET DEVELOPMENT
Soybeans rise on increased global demand
Soybeans rise on increased global demand
6/6/607 (International Herald Tribune) - CHICAGO: Soybean futures climbed Tuesday, extending a rally to a 35-month high, as demand for vegetable oil to make fuel reduced global inventories of soybeans for food use. Soybean oil rose to a 23-year high.
Demand for U.S. soybeans, which are crushed to produce animal feed and vegetable oil for food and fuel, has risen as palm-oil futures in Malaysia reached record levels. Palm oil has surged 87 percent in the past year on concern that supplies from Southeast Asia will trail global demand. Soybean oil in Chicago has jumped 44 percent in the past year.
"The palm-oil trade is part of a larger veg-oil situation that has caught many of the world veg-oil importers short" of supplies, said Roy Huckabay, executive vice president of Linn Group in Chicago. "Palm has run so far above soybeans that it is natural for soy to get tugged along as some users change to cheaper supplies."
Soybean futures for July delivery rose 12.500 cents to close at $8.282 a bushel on the Chicago Board of Trade. Earlier, the price reached $8.300, the highest point since June 16, 2004.
Crude oil fell on concerns that a government report would show that U.S. refineries increased fuel production. In New York, oil for July delivery fell 60 cents to close at $65.61
Today in Marketplace by Bloomberg
Deutsche Bank under investigation by French regulatorsIngersoll-Rand and Daimler lead worldwide stock gains by shrinking in sizeTudor closes fund investing in small companies' stock
Gasoline stockpiles increased 1.55 million barrels last week, according to the median of responses by 12 analysts in a Bloomberg News survey. Supplies of distillate fuel, a category that includes heating oil and diesel, rose 800,000 barrels, the survey showed. Prices also fell on reduced concern that Tropical Cyclone Gonu would curb oil shipments from the Middle East.
The Organization of Petroleum Exporting Countries said current high prices alone were not enough to warrant an increase in production because there was ample supply of crude oil for refiners. OPEC's next ministerial conference is scheduled for Sept. 11 in Vienna.
"If the price would continue to increase and the fundamentals change then the market needs some adjustment, but at this time we don't see it," the OPEC secretary general, Abdalla Salem El-Badri, said during an interview in London. "We have to see this trend going for a very reasonable period for OPEC to really act."
Gold shed earlier gains on speculation that central banks would increase bullion sales. Gold futures for August delivery fell $1.20 to close at $675.10 an ounce in New York.
Demand for U.S. soybeans, which are crushed to produce animal feed and vegetable oil for food and fuel, has risen as palm-oil futures in Malaysia reached record levels. Palm oil has surged 87 percent in the past year on concern that supplies from Southeast Asia will trail global demand. Soybean oil in Chicago has jumped 44 percent in the past year.
"The palm-oil trade is part of a larger veg-oil situation that has caught many of the world veg-oil importers short" of supplies, said Roy Huckabay, executive vice president of Linn Group in Chicago. "Palm has run so far above soybeans that it is natural for soy to get tugged along as some users change to cheaper supplies."
Soybean futures for July delivery rose 12.500 cents to close at $8.282 a bushel on the Chicago Board of Trade. Earlier, the price reached $8.300, the highest point since June 16, 2004.
Crude oil fell on concerns that a government report would show that U.S. refineries increased fuel production. In New York, oil for July delivery fell 60 cents to close at $65.61
Today in Marketplace by Bloomberg
Deutsche Bank under investigation by French regulatorsIngersoll-Rand and Daimler lead worldwide stock gains by shrinking in sizeTudor closes fund investing in small companies' stock
Gasoline stockpiles increased 1.55 million barrels last week, according to the median of responses by 12 analysts in a Bloomberg News survey. Supplies of distillate fuel, a category that includes heating oil and diesel, rose 800,000 barrels, the survey showed. Prices also fell on reduced concern that Tropical Cyclone Gonu would curb oil shipments from the Middle East.
The Organization of Petroleum Exporting Countries said current high prices alone were not enough to warrant an increase in production because there was ample supply of crude oil for refiners. OPEC's next ministerial conference is scheduled for Sept. 11 in Vienna.
"If the price would continue to increase and the fundamentals change then the market needs some adjustment, but at this time we don't see it," the OPEC secretary general, Abdalla Salem El-Badri, said during an interview in London. "We have to see this trend going for a very reasonable period for OPEC to really act."
Gold shed earlier gains on speculation that central banks would increase bullion sales. Gold futures for August delivery fell $1.20 to close at $675.10 an ounce in New York.