CBOT soymeal sets multi-year high while soybean futures decline
CHICAGO, Feb 3 (Reuters) -Chicago Board of Trade soybean futures ended lower Friday on expectations of a massive Brazilian harvest and spillover weakness from crude oil, but most-active soymeal futures SMv1 set an 8-1/2 year high on tight supplies of the feed ingredient, traders said.
CBOT March soybeans SH3 settled down 2-1/4 cents at $15.32 per bushel. However, for the week, the contract rose 22-1/2 cents or 1.5%, its second straight weekly advance.
CBOT March soymeal SMH3 ended up $4.70 at $496.50 per short ton after setting a contract high at $500.40, the highest price on a continuous chart of the most-active contract SMv1 since June 2014. The May SMK3, July SMN3 and August SMQ3 contracts also set contract highs.
Soymeal has climbed as worries about tightening supplies in Argentina, the world's top exporter, and firm U.S. cash markets attract speculative buying.
CBOT March soyoil BOH3 ended down 1.88 cents at 59.06 cents per pound, pressured by meal/oil spread trade and spillover weakness from crude oil CLc1 futures, given soyoil's role as a feedstock for biodiesel fuel. O/R
Some analysts also noted rising U.S. tensions with China, the world's biggest soy buyer, as a potential bearish factor for soybean futures after a Chinese spy balloon was tracked flying across the United States.
In Brazil, farmers have harvested 9.86% of the country's soybean area, compared with 20.4% a year ago, slowed by rains in key producing regions, consultancy Patria Agronegocios said.
Advance sales of Brazil's 2022/23 soybean crop rose slightly from last month but still trail historical levels as farmers hold on to supplies, according to data from Safras & Mercado.
The U.S. Department of Agriculture confirmed private sales of 132,000 tonnes of U.S. new-crop soybeans to unknown destinations.
Reporting by Julie Ingwersen; Editing by David Gregorio
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