US soyabean futures on the Chicago Board of Trade ended higher on Tuesday, tracking the Dow industrials which snapped back from 12-year lows amid easing concerns about the nationalisation of big banks. Commodities look to equity markets for a gauge of the demand outlook.
Dow industrials closed 236 points higher at 7,350 after Federal Reserve Chairman Ben Bernanke delivered a dose of relief when he signalled that nationalisation of big banks was not at hand. March soyabeans ended 8-1/4 cents up at $8.81 a bushel. Back months closed up 7-1/2 to down 2-1/2. March soyameal closed $2.50 per ton higher at $278.80.
March soyaoil ended 0.20 cent per lb higher at 30.51 cents. Volume was large. Estimated soyabean trade was 106,155 futures and 19,165 options. Soyameal volume was pegged at 45,226 futures and 2,016 options. Soyaoil trade was seen at 77,141 futures and 2,164 options. Commodity funds bought 2,000 soyabean contracts, 1,000 soyameal and 1,000 soyaoil.
The soya complex is also technically oversold after sliding since mid-January, making it prone to mild bounces. Grain traders awaiting President Barack Obama's address to a joint session of Congress hoping he will provide more insight into White House plans to tackle the deepening recession. Jitters that Argentine farmers may resume their protest over the government export taxes thus disrupting export trade - added to the late buying in nearby soyabeans. Easing worries about the size of the Argentine soyabean crop after February rains were bearish.
Argentina received good rains over the weekend and temperatures will be mild this week, with highs mostly in the mid-80s degree Fahrenheit-DTN Meteorlogix forecaster. Midwest basis bids for soyabeans were steady-firm late Tuesday. Farmer sales were slow.
On Thursday, Taiwan tendering for 40,000-60,000 tonnes of US or South American soyabeans -trade. China's US soyabean purchasing may drop - Oil World. Oil World forecasts lower Argentine sunseed crop. Malaysian palm oil futures closed higher.
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