Soyabean futures at the Chicago Board of Trade were firm early Tuesday, supported by concerns about soyabean development due to dryness in the eastern US Midwest and Delta, traders said. But the market came off its highs quickly, underscoring the volatility of the markets.
Old-crop July soyabeans were up 2-3/4 cents per bushel at $6.80-1/2 by 10 am CDT (1500 GMT). The back months were up 1-1/2 to 4 cents, with new-crop November up 2-1/2 at $6.88-1/2.
The early players included DT Trading, which bought 300 July and ADM Investor Services, which bought 100 July. Cargill Investor Services sold 500 July, traders said.
Meteorlogix weather on Tuesday reported mainly favourable conditions for developing crops in the west and northern part of the Midwest. It was still very dry in much of Illinois and Indiana, but Meteorlogix said those areas may see thundershower activity later this week.
"There will be a few showers through Thursday in the south and north but not a lot in the dry central areas of the eastern Midwest," said Meteorlogix forecaster Joel Burgio. "There will be more showers Friday and Saturday in the eastern corn belt of around 0.10 to 0.50 inch."
The US Department of Agriculture on Monday said 62 percent of the US soya crop was in good to excellent condition. That was in line with trade expectations and below the 65 percent good to excellent rating of a year ago. The soya product markets were following soyabeans higher. July soyameal was up 30 cents at $215.50 per ton, with the deferreds up 30 cents to down 20 cents.
July soyaoil was up 0.08 cent per lb at 23.24 cents per lb, with deferreds up 0.07 to 0.18.
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