Soyabean futures at the Chicago Board of Trade rose early Thursday following corn after the government surprised traders by cutting its estimate of the US corn crop, traders said.
November soyabeans was up 10 cents at $5.72-1/4 per bushel by 10:10 am CDT (1510 GMT). The back months were 9-1/4 to 10 higher. Citigroup bought 500 November soya, traders said. December corn climbed the 20-cent price limit reaching a contract high of $3.04 per bushel.
While the government's figures were bullish for the grains - a cut in the US corn crop estimate and a reduction in Australian wheat production - the soyabean figures were only supportive.
The US Agriculture Department early Thursday estimated the US soyabean crop at 3.189 billion bushels and 2006 US soya end stocks at 555 million bushels. Both numbers were below the trade's expectations. But they were still records and higher than USDA's September forecasts. Big stocks continue to overhang the soyabean market - making it a follower of both corn and wheat.
Cold and dry weather over the next several days to improve harvest conditions in the US Midwest but rainfall early next week to slow harvesting, according to Meteorlogix weather. October soyameal was up $2.50 at $168.50 and December was $2.90 higher at $170.10.
October soyaoil was up 0.45 cent at 24.60 cents per lb, December soyaoil were up 0.36 cent at 24.86. The New York crude oil was firm early Thursday, which was also supportive for soyabean oil, a key ingredient in soya biodiesel. USDA left is US soyameal end stocks estimate for 2006/07 unchanged but raised soyaoil stocks by 50 million pounds.
In the delivery market, there were 126 October soyaoil deliveries with a Tenco customer, likely a commercial, posting 101 lots. Customers of Dowd Wescott and R.J. O'Brien were the key stoppers taking 59 and 67 lots, respectively.
Comments
Comments are closed.