Soyabean futures at the Chicago Board of Trade rallied on Friday on an end-of-the-week short-covering bounce after Thursday's near-limit declines, traders said.
The strength in the July/November spread led to talk of a firming cash market. CIF soya bids for June at the US Gulf were up 2 cents but offers were 3 cents easier at the midsession, dealers said.
July soya was 30-1/2 cents higher at $8.36-1/2 per bushel and new-crop November was up 9-1/2 at $6.97. Other months were 21-1/2 to 8 cents higher with the strength in the old-crop months.
Both commercials and commodity funds were buying CBOT July soyabeans, including Produce Grain, Cargill Investor Services, Refco, Man Financial and Citigroup, pit traders said.
Mild support stemmed from USDA's export sales report showing US soya sales last week at 74,900 tonnes (old-crop and new-crop combined), versus estimates for nil to 50,000 tonnes.
CBOT soyameal futures were also higher, up $10.30 to $1.90 per ton, led by the old-crop months as the market recovered from this week's slide. Revival of some talk that the US government will restrict the use of meat and bone meal in feed rations was also supportive. July was up $10.30 at $264.80. Commercials were featured buyers early. Traders had a neutral reaction to USDA's export sales tally for US soyameal at 39,500 tonnes (old-crop and new-crop combined), within estimates for 20,000 to 50,000 tonnes. Soyaoil futures were 0.03 to 0.52 cent per lb higher on a recovery from the sharp decline on Thursday. July was up 0.52 at 28.42 cents. USDA said US soyaoil export sales last week were at 5,700 tonnes (old-crop), slightly above estimates for nil to 5,000 tonnes. Malaysian palm oil futures closed firm overnight.
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