Soyabeans hit two-month high

Soyabeans touched their highest price in more than two months on Monday, shaking off earlier losses on support from export demand and soaring soya meal. Chicago Board of Trade wheat futures hit a two-week high as worries about harvests in Argentina and Australia bolstered potential demand for US wheat.
Corn also rose, as funds covered part of their short positions in corn and wheat ahead of Thursday's Thanksgiving holiday. January soyabeans touched $13.34-1/2, the highest nearby price since September 20. The turnaround was triggered by strength in soyameal, which surged 2.2 percent due to tight cash supplies, as well as US export inspections data that pointed to strong Chinese demand for soyabeans, said Terry Reilly, senior commodity analyst at Futures International in Chicago. "The export inspections came out below expectations, but they were very strong for China," Reilly said.
CBOT January soyabeans rose 0.7 percent, or 9-3/4 cents, to $13.29-1/4 a bushel, building on Friday's 2.2 percent gain. Exporters sold 120,000 tonnes of US soyabeans to unknown destinations for 2014/15 delivery, the US Agriculture Department said on Monday. The USDA on Friday confirmed sales of 115,000 tonnes of US soyabeans to China, after reporting on Thursday weekly soyabean sales well above expectations at nearly 1.4 million tonnes.
Chicago Board of Trade December wheat rose 0.5 percent, or 3 cents, to $6.52-1/2 a bushel, climbing for a third straight session. It earlier reached $6.55, a front-month level last reached on November 11. "Funds have (previously) been heavy sellers in the wheat pit and they're sitting relatively short on corn, so we're seeing a bit of buying, because CBOT will be closed on Thursday, short day on Friday," said Karl Setzer, market analyst at MaxYield Co-op in West Bend, Iowa.
Improving competitiveness of US wheat, as suggested by strong weekly export data last week, and worries about weather damage in key exporters Argentina and Australia have helped stir Chicago futures. "Previously, you have seen tenders bypassing US wheat, but now with Australia for one seeing unfavourable weather conditions, this could shift demand to the US," said Vanessa Tan, investment analyst at Phillip Futures Singapore. CBOT December corn added 0.6 percent, or 2-1/2 cents, at $4.24-3/4 a bushel, picking up support from a strong US cash market, Setzer said.