Chicago Board of Trade soyabean futures ended higher on Tuesday on firm cash soyabean and soyameal prices, speculative short-covering and buying of November soyabeans by option traders, brokers and traders said.
"Farmers are not selling their soyabeans, and the market may have to rally 10 more cents before we see sales," they added.
Talk of possible sales of two cargoes of soyabeans to China and firm CIF values were also supportive, brokers said.
Soyabean futures closed up 2 cents to 13 cents, with November up 13 cents at $5.27-3/4 and January up 12 cents at $5.32-1/4. Funds bought roughly 4,000 contracts; RJ O'Brien and Reface each bought 800 November, traders said.
Commodity funds rolled short November positions ahead of first notice day for deliveries against November on October 29. Cargill Investor Services spread 900/November/January, Fiat Futures spread 700 November/January and Man Financial spread 600 November/January, they said.
Options traders who were heavily short $5.40, $5.30 and $5.10 calls were seen covering those positions ahead of Friday's last trading day for November options, brokers said.
Gains were limited by forecasts for a record US crop this year and good harvest progress, brokers said.
The US Department of Agriculture late on Monday reported 71 percent of the expected record 3.107-billion-bushel crop had been harvested as of Sunday.
Overnight US soyabean export business was routine, with Taiwan buying 60,000 tonnes of US soyabeans, brokers noted.
Crop enhancing rains overnight in Brazil also limited gains, brokers said. Brazil is the second-largest global soyabean producer after the United States. Soyameal futures closed up $2.70 to $3.30 per ton, with December up $2.70 at $156.80 on light commercial and speculative buying, brokers said.
Funds bought about 1,000 contracts while commercials were about even, brokers said. Soyaoil futures ended up 0.05 cent to 0.58 cent, with December up 0.58 cent at 20.67 cents on light commercial buying and support from a firm close in rival Malaysian palm oil futures, brokers said.
Funds bought about 500 lots, while commercials were noted on both sides, traders said.
The CBOT November/December crush margin ended down 0.68 cent at 44.58 cents.
On Tuesday's estimated CBOT volume for soyabean futures was 87,537 contracts, compared with Monday's trade of 59,153 lots.
Options volume was seen at 34,188 lots.
Estimated soyameal futures volume was 23,992 contracts, compared with Monday's trade of 20,937 lots. Soyameal options volume was estimated at 3,360 contracts.
Soyaoil volume was estimated at 24,208 lots, compared with Monday's trade of 16,604 contracts. Options volume was 1,840 lots.
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