Dry SA Weather Helps Soybeans

CHATHAM - Feb 10/06 - SNS -- Soybean markets were supported this past week by forecasts of dry weather in South America and limited selling interest, says Mike Bakker, Policy Analyst, Ontario Soybean Growers.

"Traders and analysts are reporting lower then expected Brazilian production forecasts but USDA estimates are unchanged," he said.

Cash prices for Chatham, London and Hensall for February 9, 2006 were: CDN $6.31 per bushel, $6.31 and $6.28 all up 4-5 cents from the previous week.

Grower bids were helped along by some weakness in the Canadian dollar. It dollar dropped slightly by week's end on the government report showing Canada's biggest decline in manufacturing jobs in 15 years. Canadian currency is down from 87.88 cents on Jan 31, the highest level since December 1991.

Bakker said soybean analysts are suggesting that there is a general lack of interest in the selling of grains this week. USDA pegged ending stocks at 555 million bushels as compared with trade expectations near 534 million bushels.

The latest USDA carry over is at a record high and is significantly over the 256 million bushels from last year. Exports were also reported to be 40 million bushels lower, to an estimate of 910 million bushels. Weekly US exports were 562,300 metric tons above trade expectations.