Soyabean futures at the Chicago Board of Trade rebounded early Tuesday, after a steep slide the preceding day, amid harvest of a large US soya crop, traders said.
November soya broke nearby resistance at $5.61-1/2 per bushel, pushing the contract 11 cents higher to $5.66-1/2. By 10:20 am CDT (1520 GMT), November soya was 7-1/2 cents firmer at $5.63 per bushel. The deferreds were up 6-1/4 to 8 cents.
Fimat Futures and R.J. O'Brien were among the early buyers of November soya.
The market was due for a technical bounce, slipping near oversold conditions on Monday. The nine-day relative strength index for the November contract closed Monday at 35. Chartists view a reading of 30 or lower as an indication of an oversold market.
Traders were also covering short positions and evening positions before the US Agriculture Department issues its October crop production and supply/demand reports on Wednesday.
An average of analysts' estimates put the 2005 US soya crop at 3.014 billion bushels, above the government's September forecast for 2.856 billion. The analysts pegged 2005/06 US ending soya stocks at 291 million bushels, higher than the USDA September estimate at 205 million.
Midwest cash basis bids were weak on Tuesday as harvest continued. River bids were sharply lower due to high barge costs, dealers said.
The soya products followed soyabeans higher on a technical recovery. October soyameal was up $1.60 per ton at $165.90, with the deferreds up $1.50 to $2.50.
Soyaoil was getting an added lift from the strength in crude oil. CBOT soyaoil futures have been tracking the energy markets over the past three weeks amid prospects for increased demand for substitute fuels like biodiesel. Biodiesel is made largely from soyabean oil.
October soyaoil was up 0.29 at 23.36 cents per lb., with deferreds up 0.18 to 0.24 cents.
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