Lang
Soybean prices rose sharply, driven by commercial and technical buying, pushing the contracts to solid weekly gains. Soybean and soybean oil contracts tracked a sharp rise in crude oil prices, which surged on escalating tensions in the Middle East. The Renewable Volume Obligation (RVO) figures announced on Friday are expected to be favourable for biofuels, helping soybean oil close at its maximum permitted daily gain. Current weather conditions for crop development in the United States appear largely favourable, with the US Department of Agriculture (USDA) due to release its weekly crop progress and condition report on Monday. Soybean markets are still awaiting further details on the trade framework with China following recent negotiations on tariffs and rare earth minerals. NOPA's (National Oilseed Processors Association) May crush figures are also due on Monday, with average forecasts pointing to 193.519 million bushels, up from both the previous month and the same period last year. Separately, the Buenos Aires Grain Exchange raised its forecast for Argentina's wheat crop to 50.3 million tonnes, an increase of 300,000 tonnes from its previous estimate, with harvesting more than 90% complete. Meanwhile, soybean meal contracts fell on product spread trading and expectations of a bumper harvest from Argentina, the world's largest exporter of soybean products.
Source: Al Mal Forum