Soyabean futures rally

Soyabean futures at the Chicago Board of Trade closed sharply higher on Thursday, boosted by technical buying following the strength in corn and soyabean oil, traders said. During the midseason soyabeans slid from their highs.
But buying picked up late when corn took off amid updated weather forecasts that looked drier for the eastern US Midwest and the strength in crude oil that spilled over to soyaoil.
"We had a stronger tone across the complex. I think crude oil provided some support and we had a nice round of short covering develop," one CBOT trader said.
July soyabeans closed 9-3/4 cents higher at $8.32 per bushel, after reaching a high of $8.33 but failed to penetrate its contract high of $8.34-1/2 made this week.
The back months settled 9-1/2 to 13 cents firmer, with most of the 2008 contracts notching fresh highs. The soyaoil market surged to close 0.42 to 0.53 cent per lb. higher, with July up 0.46 cent at 36.36 cents.
Soyabeans and soyabean oil prices are hovering at multiyear highs tracking the strength in the global vegetable markets due to increasing food and fuel demand.
Malaysian palm oil closed mostly higher overnight, which helped lift soyaoil. The strength in the New York crude oil market provided more support as July crude oil ended nearly $1 per barrel up at $66.93 on supply concerns.
Soyameal took its cue from the other Chicago markets, closing $1.70 to $3.50 per ton higher. July ended $2.30 higher at $226.20.
Across the complex, volatility increased late in the session as index funds were rolling July long positions. Commodity funds bought 8,000 soyabean contracts, 2,000-3,000 soyameal and 3,000 soyaoil, traders said.
US Census Bureau reported domestic soyaoil stocks for April at 3.29 billion lbs., down from a revised 3.36 billion lbs. reported for March a supportive input.
Weekly export sales were disappointing for soyabeans and soyaoil and supportive for soyameal. USDA said 225,200 tonnes of soyabeans were sold for export last week (200,200 tonnes old-crop), which was below trade estimates for 250,000 to 400,000 a tonne. Weekly export sales for soyameal were 128,300 tonnes (127,300 tonnes old-crop), above estimates for 50,000-125,000 tonnes. A sale of 50,500 tonnes of soyameal to Cuba was confirmed.
US weekly export sales for soyaoil were light at 2,500 tonnes of old-crop. That was compared with estimates for nil to 10,000 tonnes.
US soyabean cash markets were weakening amid ample nearby supplies after recent country sales and limited demand, dealers said.