Soyabean futures at the Chicago Board of Trade closed higher on Wednesday amid renewed worries about the potential fallout from the devastating Asian soya rust disease, traders said. Active January climbed 6 percent during the day and new-crop November jumped nearly 5-1/2 percent as speculators scrambled to buy back at least some of the contracts they had previously sold.
Some new net buying of soya futures also probably complemented the bout of fund short covering. CBOT soya closed 12-1/2 to 20-1/2 cents per bushel higher, with November up 12-1/2 at $5.23 per bushel.
January was up 14-1/2 at $5.25. New-crop November ended up 20-1/2 at $5.61-1/2. Traders said the news from the US Department of Agriculture on Wednesday that Asian soya rust had been found in Louisiana, with a very high risk the rust would spread, triggered the strong gains in the weather and disease-sensitive soyabean futures market.
South American soya production was drastically cut last year by the spread of Asian soya rust.
Brazil's crop research agency, Embargo, said on Wednesday that Asian soya rust was found for the first time in 2004/05 in soyabean crop test areas in Mateo Gross state, Brazil's biggest soya producer. There are no CBOT delivery specifications for soyabeans that have been treated with Asian rust fungicide. Talk of fresh Chinese interest in soyabeans added support, along with Taiwan buying 56,000 tonnes of US soya.
But a large US soya crop looms over the market. USDA on Friday will release its November crop production report. Averages of analysts' estimates expect USDA to peg US soya output at a record 3.137 billion bushels.
Cash basis bids for corn in the Midwest late on Tuesday were steady, despite brisk harvest activity and moderate selling. Soyameal futures closed $4.00 to $6.20 per ton higher, with December up $4.00 at $153.90.
Soyaoil was up 0.34 to 0.65 cent per lb., with December up 0.34 at 20.79 cents per lb.
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