Soyabean futures at the Chicago Board of Trade bounced higher early Tuesday on a mild recovery after the sharp price slide on Monday, traders said. The recovery was limited after a month-long rally led by commodity fund buying. The stronger dollar on Monday and waning interest by funds in commodities pushed soyabean prices more than 20 cents per bushel lower.
May soyabeans were 3 cents per bushel higher at $6.29-1/2 by 10:25 am CST (1625 GMT), with the deferreds up 3 to 5 cents.
Refco was among the early buyers. Local traders were also featured buyers, floor traders said.
The recent weakness in prices brought a renewed look at market fundamentals.
Those include expectations for a large oilseed supply globally and export business switching to South America from the United States, especially as the Brazilian soya harvest picks up. The Brazilian bean harvest was 36 percent complete by March 18, said private analyst Safras.
However, there was continued talk early Tuesday that China was cancelling South American soya cargoes and buying off the Pacific Northwest because of competitive ocean freight rates.
Southern Brazil remained parched, further stressing the soyabean crop and cutting bean yields. But much of the reduction has been priced into CBOT markets, so weather was becoming less of a market factor.
The lowest trade estimates for the Brazilian bean crop were running between 51 million and 52 million tonnes, compared with the US Agriculture Department's current estimate of 59 million tonnes.
CIF soyabean values at the US Gulf were weaker early Tuesday.
The soyameal market was firm, consolidating around the current levels after the recent volatility. May meal was up $1.30 at $188.60, with the back months up $1 to $1.40.
But softer US cash soyameal markets limited the recovery from the last two days of weaker closes in CBOT futures, traders said.
CBOT soyaoil futures were steady to firm, trying to recover from Monday's steep sell-off.
May soyaoil was up 0.09 at 22.64 cents per lb, with the deferreds steady to up 0.05 cent.
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