Soyabean futures at the Chicago Board of Trade soared early on Wednesday, supported by smaller-than-expected estimates of the US soya crop and end stocks released by USDA, traders said.
November soyabeans rose 16-1/2 cents per bushel to $5.80 by 10:15 am CDT (1515 GMT). The deferred months were 13-1/2 to 16 cents higher.
Citigroup and Rand Financial each bought 500 November, traders said. USDA estimated the 2005 US soya crop at 2.967 billion bushels, below an average of analysts' estimates for 3.014 billion. USDA pegged 2005/06 US ending soya stocks at 260 million bushels, down from an average of analysts' estimates for 291 million.
"There's nothing in this report that would suggest that we need to go lower to discount a more bearish scenario. We may find support for a period of time," said Anne Frick, oilseeds analyst with Prudential Securities.
In the world numbers, USDA raised its estimate for the Argentine 2005/06 soya crop to 40.50 million tonnes, from 39 million, but left its Brazilian soya estimate unchanged at 60 million tonnes. Those production forecasts were in line with trade expectations.
The soya products found support from the strength in soyabeans. CBOT October soyameal was up $2.90 per ton at $168 and December was $3.20 higher at $171.10.
October soyaoil was 0.45 cent per lb higher at 23.85 and December was up 0.72 at 24.30 cents. Soyaoil found an added boost from higher crude oil prices. The soyaoil market has been tracking the energy markets in recent weeks amid rising demand for biodiesel, made largely from soyabean oil.
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