Chicago Board of Trade soyabeans ended higher on Thursday, after surging to the highest level since June 1997, on a lower crop estimate for No 2 global soya producer Brazil and speculative buying, traders said.
CBOT soyaoil futures hit a fresh 15-1/2-year top before ending just off that level, while soyameal also rallied sharply, traders said.
The Brazilian government cut its 2003/04 (Oct/Sept) soyabean crop forecast to a record 57.66 million tonne, from its previous estimate of 58.76 million tonnes.
The US Department of Agriculture estimated on February 10 Brazil's crop would total 61 million tonnes. Wet weather in the north and dry conditions in southern Brazil have hurt yields.
An ample South American soyabean crop is needed this spring to meet strong global demand. US soyabean supplies are expected to fall to a 27-year low by August 31, as strong Chinese buying and good domestic demand pare already drought-cut supplies, traders noted.
CBOT soyabeans settled up 2 cents to 25-1/2 cents, with March up 25-1/2 cents at $8.80 per bushel, after hitting a top of $8.82-1/2, and may up 24-1/2 cents at $8.76-1/2.
The four nearby contracts set new contract highs. US cash soya basis markets were mixed across the Midwest on Thursday, dealers said.
Overnight export business was quiet. The rally came despite comments at the US Department of Agriculture's annual outlook conference by Chief Economist Keith Collins that the highest market prices since 1998 would boost US soyabean plantings by about 1 percent. He forecast a record US soyabean crop of 2.9 billion bushels.
CBOT soyameal futures ended up $2 to $8.70, with March up $8.70 at $267.70 and may up $8.20 at $267.10.
Cash soyameal basis offers were steady to firm on Thursday, dealers said. CBOT soyaoil settled up 1.06 cent per lb to down 0.27 cent, with March soyaoil up 1.05 cent at 32.47 cents, after hitting a 15-1/2-year top of 32.55 cents, and may up 1.06 cent at 32.44 cents.
Soyaoil futures rebounded from Wednesday's losses, while a firm close in rival Malaysian palm oil futures was also supportive, traders said.
Rolling of front-month March soya positions also was expected ahead of the February 27 first notice day for deliveries, CBOT traders said.
CBOT soya registrations late on Wednesday totalled 266 contracts, unchanged from the previous day. Registration of a contract does not mandate delivery.
Liquidation of March soya options was also noted ahead of Friday's expiration. The CBOT May crush margin closed up 5.20 cents at 67.96 cents.
Estimated CBOT soyabean volume on Thursday was 60,214 lots, compared with Wednesday's 89,039. Options trade was seen at 20,049.
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