Soyabean futures at the Chicago Board of Trade climbed above $7 per bushel across the board on Wednesday as weather worries fuelled another round of commodity fund buying, traders said. Soya oil futures also rallied to a near three-month high on comments made by President George W. Bush urging lawmakers to pass an energy bill that would increase the use of soydiesel and ethanol.
While there was nothing new about the president wanting an energy bill passed, reminders of increased demand for soydiesel and corn-based ethanol heightened volatility and buying by commodity funds. Worries about hot, dry weather moving into the US Midwest next week also boosted both markets.
The spot contract reached its highest level in 10 months when it reached $7.12 in mid-August. New-crop months led the market higher - all making contract highs. July beans were up 9-1/2 cents per bushel at $6.99-1/4 at midday CDT (1700 GMT). The back months were 8-1/2 to 11-3/4 cents, with new-crop November 11-1/2 $7.16-1/4. CBOT July soyoil was up 0.80 cent per lb at 24.05 cents, after climbing 1.04 cent to 24.29 cents.
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