The Chicago Board of Trade soyabean market saw a double-digit rise on Monday as traders covered short positions, partially spurred by a bigger-than-expected weekly export inspections figure, traders said. Shortly after the open, the US Agriculture Department reported that 35.4 million bushels of soyabeans were inspected for export last week.
That was above trade estimates for 25 million to 29 million, and China, the world's top soya buyer, took half of the shipments. "It was supported by a good bean export inspections number. Some are trying to tout a little bit of dryness in southern Brazil," said Dan Cekander, analyst with Fimat USA. January soyabeans closed 10-3/4 cents higher $6.66-3/4 per bushel, up 1.6 percent. The back months were up 5 to 12-1/4 cents.
The market found technical strength when the nearby contract held above its mid-November low of $6.51, traders said. "It seemed like the buying started in meal," one floor broker said. "Tenneco bought 2,500 May meal." December soyameal closed $2.30 higher at $187.70 and January ended $2.20 up at $190.30.
January found support near its 50-day moving average of $186.30, triggering technical buying. Funds bought 2,500 soyameal contracts, 2,000 soyabeans and 1,000 soyaoil.
The market was due for a rebound after last week's sell-off and speculators trimming of their net long positions during the week ended December 5 according to data issued by the Commodity Futures Trading Commission late on Friday. The government also released its monthly crop data before the open, which provided little price direction as it came in close to trade expectations.
The US Agriculture Department left its estimate of US 2006/07 soya end stocks unchanged from last month at 565 million bushels and very close to the average of trade estimates of 568 million. The government also left its forecast of the Brazilian soya crop unchanged at 56 million tonnes and raised its estimate of Argentine soya crop to 42 million. Analysts and traders expected both numbers.
The biggest change in the soya complex came in soyaoil, with USDA raising its 2006/07 US end stocks for soyaoil by 41 million lbs., despite an increase in projected exports. That weighed on the market, but prices recovered amid commercial pricing in oil. The oil market built strength during the session, ending at the day's highs.
December CBOT soyaoil closed 0.45 cent higher at 28.73 cents per lb, January soyaoil was 0.40 higher at 29.03 cents. USDA left its 2006/07 US end stocks estimate for soyameal unchanged at 300,000 tons. Traders were turning their attention to South American weather, with some concerns about the dryness in southern Brazil.
Meteorlogix weather on Monday said hot and dry weather the past couple of weeks has depleted soil moisture in Brazil's Rio Grande do Soul and some hot weather is expected over the next five days in Argentina.
Spot basis bids for soyabeans in the Midwest were steady to weaker late on Monday as the day's CBOT rallied sparked farmers to sell some of their recently harvested crop, cash dealers said. Overnight, there was another round of big soyameal deliveries, 959 lots agalaysian palm oil futures closed firm.
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