Soyabean futures at the Chicago Board of Trade were holding firm early on Tuesday amid a rumour China had bought US soya and on technical short-covering, traders said. Support also stemmed from a less-than-expected improvement in crop condition ratings, they said.
At 10:15 am CDT (1515 GMT), CBOT soya was up 3-1/2 to 5-3/4 cents per bushel. September was up 5-3/4 at $6.13 per bushel. New-crop November was up 4-3/4 at $6.22.
Pit sources said FIMAT Futures bought 500 November and commercial trader Bunge sold 300 November.
Traders said there was a widespread rumour that China may have bought from 5 to 10 cargoes of US soya.
Strong cash basis values for soya at the US Gulf export outlets and in the interior Midwest may have led to talk that China might be buying US soya, the traders said.
However, the export arena featured news overnight from Hong Kong that Chinese soya buyers were retreating to the sidelines because higher freight rates were boosting costs for imports.
Traders had expected another round of short-covering in soya since the market remained at or near oversold levels following the fall late last week to near six-month lows. Cash basis bids for soya in the Midwest on Tuesday were firm and farmer selling remained slow.
Technical support in the November contract was at $6.15 per bushel. Resistance at $6.24 was broken, driving the contract to a session high of $6.26. The nine-day relative strength index for November closed Monday at 29, below the benchmark 30 level that technical traders view as an oversold area.
Soyameal was 70 cents to $2.10 per ton higher with the market following soyabeans. September was up $1.50 at $191.40 per ton.
Soyaoil also was firm, boosted by the short-covering gains in soyabeans, the traders said. September was up 0.18 at 22.61 cents per lb.
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