Chicago Board of Trade soyabean futures ended higher on Thursday as worries about tight US supplies outweighed a break in CIF Gulf basis bids, traders said.
Old-crop US soyabean supplies are expected to drop to a 27-year low by August 31, the end of the 2003/04 marketing year.
Cash US soya prices have soared recently on strong domestic demand, but on Thursday's dip in CIF bids suggested a possible slowdown in the rally from the export side.
Still, many Midwest processor bids were at least $1 more than the CBOT August soyabean contract on Thursday.
Soyabeans ended up 6-1/2 cents to down 1/2 cent, with July up 4 cents at $9.21-1/2 and November up 5 cents at $6.99 per bushel.
Commodity funds bought about 2,000 contracts and commercials were light net buyers, brokers said. Gains were attributed to positioning before on Friday's last trading day for July soyabean and soya product options.
Open interest in July $10.00 soyabean calls was a hefty 13,264 contracts before on Thursday's open, the largest open interest of any CBOT July soyabean call strike, drawing prices toward that level ahead of expiry.
Spreading and position rolling ahead of next on Wednesday's first notice day for July soyabeans and soya products was also noted. There were no changes in CBOT registrations posted on Wednesday, after a cancellation in soyameal receipts on Tuesday evening.
Traders have been expecting very few to no deliveries against CBOT July soyabeans on Wednesday's first notice day, as only three contracts are currently registered with the exchange and US cash prices continue to soar.
Soyameal futures settled up $1.40 to $5 per ton, with July up $1.40 at $306 and December up $3.40 at $223.60 per ton.
Soyaoil futures ended up 0.19 cent to 0.36 cent per lb, with July up 0.19 cent at 29.40 cents and December up 0.21 cent at 24.68 cents.
Supportive weekly US soyabean export sales data also underpinned soya futures, brokers said.
The US Department of Agriculture on Thursday reported weekly US soyabean export sales at 127,000 tonnes (old and new crop combined), above estimates for none to 75,000 tonnes.
In particular, sales of old-crop soyabeans to Japan suggested that lower freight rates are boosting business. The old-crop sales come at a time when US stocks are extremely tight.
Weekly US soyameal export sales totalled 28,000 tonnes (old and new crop combined), at the low end of traders' estimates, while soyaoil export sales totalled 200 tonnes, below traders' estimates.
On Thursday's US Census Bureau May soyabean crush data were also viewed as neutral to mildly supportive, traders said.
Census said the May crush totalled 117.46 million bushels, above analysts' average estimate of 117.2 million.
US soyameal stocks on May 31 totalled 465,547 tons, above an average of estimates for 329,500 tons, and US soyaoil stocks were at 1.576 billion lbs., slightly below an average of estimates for 1.583 billion, Census said.
On Wednesday's concerns about outlooks for possible hot, dry weather during July lingered, but some traders said on Thursday's longer-range maps suggested the US corn belt weather pattern could resemble present conditions, with a bias toward cooler than normal temperatures and the possibility of rains during the second week of July.
The CBOT July soyabean futures crush margin closed up 1.17 cents at 75.10 cents per bushel, while the August margin ended up 4.74 cents at 103.72 cents.
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