Chicago Board of Trade soyabean futures surged on Wednesday's to a six-week high on fears of a possible northern US Midwest freeze next week, an effect of the projected arrival of Hurricane Frances in the south-eastern United States, brokers said.
They worried the hurricane's expected arrival in the United States could trigger a freeze across the northern US Midwest at a time when soyabeans there are already lagging normal maturity rates.
And they feared heavy rains across southern US states could disrupt the ongoing soyabean harvest.
US soya crop conditions have already begun to deteriorate, with the US Department of Agriculture late Monday reporting 64 percent of the crop was in good to excellent condition, down from 67 percent last week.
CBOT soyabeans were last up 11-1/4 cents to 13 cents per bushel, with September up 12-3/4 cents at $6.40 and November up 11-3/4 cents at $6.39, after surging to an early six-week high of $6.52.
Refco Inc bought 500 November, Rand Financial and Cargill Investor Services each bought 300 November and Caylon Financial and Citigroup each bought 200 November, brokers said.
The rally occurred despite technically overbought market conditions, they noted. The nine-day relative strength index for CBOT November soyabeans rose to 79 early Wednesday after closing at 73 on Tuesday, both above the benchmark 70 level that technical traders view as one indicator of an overbought market.
No deliveries were posted on Wednesday against CBOT September soyabean, soyameal or soyaoil futures - as expected by most CBOT traders with US soyabean ending stocks at a 27-year low - a factor that could limit losses, they added.
US soyabean export business was quiet overnight and cash US Midwest and CIF Gulf soya basis bids early Wednesday were steady to weak, dealers said.
CBOT soyameal futures were last up $2.20 per ton to $4.70, with September up $2.20 at $183.00 and December up $3.50 at $184.70 per ton. No soyameal was posted Wednesday for delivery on the September contract.
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