Chicago Board of Trade soyabean futures were choppy on Thursday while soyameal was firm amid prospects that soyameal demand could rise if the government further restricts the use of animal by-products in feed, traders said. The soyameal market got an early jolt after the USDA said two preliminary tests for mad cow disease in one animal were positive. Results from a second round of testing was expected in four to seven days. If the government adds further restrictions on the use of meat and bone meal in livestock feed, soyameal could be substituted as a high-protein source in feed rations.
"There's just a lot of uncertainty," one CBOT floor trader said. "But we won't know anything for a week."
The news sparked another wave of fund short-covering.
CBOT soyabeans were 1-1/2 to 3 cents per bushel higher by 11:50 am CST (1750 GMT). January was up 1 cent at $5.54.
Soyameal market was 80 cents to $3 per ton higher, with December up $1 at $158.80.
Refco was the featured soyabean buyer of 1,400 January. In soyameal, ADM Investor Services, FC Stone and Calyon each bought 200 to 300 December.
The climb in soyabeans was limited as the market was viewed technically overbought going into the session, hitting a two-month high on Wednesday. January's nine-day relative strength index closed at 71 on Wednesday, just above the 70 level viewed as an overbought market.
CBOT soyaoil futures were 0.08 to 0.12 cent per lb lower on a slight setback after the recent gains. December was down 0.13 at 21.48 cents. Malaysian palm oil futures closed lower on profit-taking after the rally the day before.
USDA Thursday said US soyaoil export sales last week totalled 13,600 tonnes. Traders expected sales for 5,000 to 10,000 tonnes.
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