Soyabean futures at the Chicago Board of Trade rallied early Wednesday, sparked by worries that dry, cool crop weather was slowing the growth of this year's US soya crop, traders said. Soyabeans gapped higher on the open and July was hovering near a two-month high. The market was technically strong, trading above all its 50-, 100- and 200-day moving averages. July soyabeans were up 15 cents at $6.60-1/2 per bushel, with the deferreds up 12-1/2 to 15 cents by 11 am CDT (1600 GMT).
"Northern and central Illinois, western Indiana - we really don't have forecast for rain there all the way out to the 11-to-15 day forecast," said one CBOT trader.
Underlying support stems from speculative buying by commodity funds. Countering that were weaker US and South American cash markets as farmers took advantage of this week's weather rally to sell beans. The soyameal and soyaoil markets were also sharply higher following beans.
Meal futures were technically strong, with all months climbing above $200 per ton by Wednesday's midsession. July was up $5.60 per ton at $204.30. CBOT soyaoil futures were 0.45 to 0.52 cent per lb higher, with July up 0.46 at 23.33 cents.
The July crush was about 3/4 cent firmer at 43.92 cents per bushel.
The product markets were stronger despite recent weakness in US cash soyameal markets and outlooks for supplies of vegetable oils globally.
In export news, Israel bought 40,000 tonnes of optional-origin corn and 14,000 tonnes of optional origin soyameal in a tender, European traders said on Wednesday.
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