US soyabeans climbed to their highest level in nearly a month early on Wednesday on a mix of technical strength and strong demand from exporters as well as domestic processors, traders said. Corn followed soyabeans higher and drew further support from bullish weekly US ethanol data, and wheat snapped out of a four-day slide.
At the Chicago Board of Trade as of 10:45 am CST (1645 GMT), soyabeans for January delivery were up 19 cents, or 1.3 percent, at $14.74-1/2 per bushel after reaching $14.76-3/4, the contract's highest level since November 9. CBOT March corn was up 5 cents, 0.6 percent, at $7.57 a bushel, and March wheat was up 3-1/2 cents, 0.4 percent, at $8.60 a bushel.
CBOT January soyabeans made a solid break above their 200-day moving average at $14.64, and traders were waiting to see whether the contract could settle above that line for the first time in a month. Export demand lent support. Talk that China, the world's biggest soya consumer, was buying US soyabeans for January shipment off the Pacific Northwest has swirled in the market for several days, although there was no confirmation of fresh purchases.
"There is ongoing Chinese interest for US beans," said Dan Cekander, analyst with Newedge USA in Chicago. He noted that exporters have been competing for soyabeans with US soya processors who are currently reaping high profit margins. "I think there is a very strong US crush pace, with the big domestic crush margins," Cekander said. Soyabeans drew background support after Statistics Canada reported Canadian production of canola, a competing oilseed, at 13.3 million tonnes, below an average of trade estimates for 13. 7 million. CBOT corn futures got a boost from weekly data from the US Energy Information Administration showing that US production of corn-based ethanol rose about 4 percent in the latest week, to 835,000 barrels per day, ending a string of declines.
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