Chicago Board of Trade nearby soybean futures settled up the 50-cent daily limit on Tuesday on speculative buying and worries about this year's US crop following severe recent storms, traders said.
A limit-up close in nearby CBOT corn contracts, also on crop worries, underpinned CBOT soy futures, they said.
"It's hard to remember when corn and soybeans last closed limit-up," said Vic Lespinasse, AG Edwards analyst at the CBOT. "Tomorrow we'll trade on USDA's weekly crop progress reports, overnight Chinese soy prices and US weather forecasts".
CBOT soybeans closed up 26-1/2 cents to 50 cents per bushel, with July up 50 cents at $8.64 and November up 50 cents at $7.34-1/2. There were 800 unfilled buy orders left in July at the close, and CBOT July soybean options pointed to an $8.70-$8.71 open, brokers said.
There were 200 unfilled buy orders in August, 400 in the September contract and 500 in November. Commodity funds bought at least 3,000 CBOT soybean contracts and commercials were net buyers, brokers said.
CBOT soymeal ended up $12.00 to $20.00 per ton, with July up $18.90 at $273.70, August up the $20-per-ton daily trading limit at $267.00, and December up $19.00 at $234.70 per ton.
Commodity funds bought at least 2,000 lots and commercials were light net buyers, brokers said.
Cash US soymeal basis offers were steady to firm on Tuesday, brokers said. Soyoil futures settled up 0.60 cent to 1.50 cents per lb, with July up 1.46 cents at 29.51 cents.
Commodity funds bought at least 2,000 lots and commercials were light net sellers, brokers said.
News that top global vegetable oil importer India on Monday had lowered its base import price for crude soyoil to $628 from $710 also supported CBOT soyoil, CBOT brokers said.
India fixes base prices to check revenue loss due to under-invoicing by importers. Traders pay import duties on base values irrespective of the prices at which they purchase oils in the world market. Indian imports of Brazilian and Argentine soyoil imports were expected to rise following the cut in the base price.
Still, it was speculative buying and fears about US crop damage that underpinned CBOT soy on Tuesday, brokers said.
The governor of Iowa, the top US corn producing state and No 2 soybean growing state in 2003, proclaimed 65 counties state disaster areas after severe storms. That followed last week's declaration of 14 of Iowa's counties as federal disaster areas due to storm damage.
Moreover, forecasts for more rains this week prompted fears of delays in soy plantings, CBOT traders said.
After Tuesday's close, the US Department of Agriculture reported US soy plantings were 77 percent complete as of Sunday, matching traders' estimates and up from last week's 67 percent seeded. Fifty-five percent of the crop had emerged.
Sharp overnight gains in soybean futures prices in top global soybean buyer China also supported CBOT soy on Tuesday, traders said.
Still, traders worried about ongoing reports of disruptions in soybean trade between China and No 2 global soy producer Brazil.
However, Brazil's Agriculture Ministry said that Chinese quarantine authorities had banned a seventh soybean trader from shipping Brazilian beans to China due to fungicide contamination.
US Midwest soybean cash basis prices were steady to weak late Tuesday, dealers said. In export news, Taiwan set a tender for Wednesday to buy up to 60,000 tonnes of US or Brazilian soy.
The CBOT July soybean crush margin closed up 7.64 cents at 62.75 cents per bushel.
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