Soybean market to shoot higher

Mike McGinnis03/26/2012 @ 8:34am

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.