Soybean futures at the Chicago Board of Trade were firm early Wednesday on a technical bounce and followed the strength in the soyaoil pit, traders said.
CBOT soyaoil futures have tracked the moves in the volatile US energy market this week amid the rising price of biodiesel fuel.
November soyabeans were up 4-3/4 cents per bushel at $5.76-3/4 by 10:20 am CDT (1520 GMT), with the deferreds up 2-1/2 to 5 cents. Commodity funds were early buyers of November, including R.J. O'Brien, Citigroup and ADM Investors, traders said.
About 90 percent of US biodiesel is made from soyabean oil. Energy markets were hot on Wednesday, with US crude futures escalating over $68 a barrel as fears heightened that Hurricane Rita threatened to hammer US Gulf oil markets.
The soyaoil market rallied about 3 percent early Wednesday. The October contract was up 0.61 cent per lb at 23.06 cents and the deferreds were up 0.58 to 0.67.
The nine-day relative strength index for November closed Tuesday at 31, near the benchmark 30 level that chartists view as an oversold area.
Midwest cash basis bids for soyabeans were weaker at interior locations as harvest picked up, and strong at river terminals as barge freight costs eased, dealers said.
The soyameal market lost ground to soyaoil, 50 cents to $1 down. The October meal contract was 50 cents lower at $171.80. Soft US cash soyameal markets continue to loom over the market as meal supplies were expected to grow as more freshly harvested soyabeans move into Midwest crushing plants.
Export news overnight featured an Israeli group setting a tender for 7,000 tonnes of US soyameal. Another Israeli group said it was tendering for 7,000 to 14,000 tonnes of US or South American soyameal.
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