Soyabean futures at the Chicago Board of Trade were higher early Wednesday on follow-through buying from the strong close the day before, traders said. The market was on fire on Tuesday as index commodity funds stepped in to buy CBOT soyabeans along with other US commodities, driving the Reuters CRB Index of 17 commodity futures more than 2 percent higher. Much of the buying stemmed from a new index fund with at least $500 million to invest in commodities, floor traders said.
May soyabeans were up 5 cents at $6.36 per bushel by 10:10 am (1510 GMT). The deferreds were up 4 to 8 cents.
The market rallied through its 10- and 20-day moving averages on Tuesday and remained above those levels on Wednesday. The 10-day moving average of the July is $6.26 and the 20-day is $6.28-1/2.
Funds were early buyers on Wednesday, traders said. Among the featured players were SAK Trading and Goldenberg Hehmeyer each buying July soyabeans.
The fundamental picture remained bearish amid ample supplies of oilseeds globally and waning US export business as importers turn to South America for supplies of freshly harvested beans.
Weather in Brazil and Argentina was generally favourable for harvest, the Meteorlogix weather service said early Wednesday.
The soyameal and soyaoil markets were also higher on follow-through buying by index commodity funds after Tuesday's fund-led rally.
May soyameal was up $1.10 per ton at $196, with deferreds mostly higher - up $1.70 to down 50 cents.
May soyabean oil was 0.18 cent per lb. higher at 23.01 cents per lb., while the deferreds were 0.07 to 0.10 cent firmer.
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