Chicago Board of Trade soyabean futures closed higher on Tuesday on a mild technical short-covering bounce after the steep price slide on Monday, traders said.
Strength in the soyaoil pit amid strong commercial buying helped lift soyabeans.
"There's some rumblings that China is looking for oil could be South American or US," said one floor broker. November soya settled 2-3/4 cents higher at $5.74-1/4 per bushel and January was 2-1/2 firmer at $5.85-1/2.
December soyaoil was up 0.14 cent per lb at 22.81 cents, with deferreds up 0.07 to 0.12.
Commercial Bunge bought 900 December soyaoil, traders said. In soyabeans, commodity funds were even while there was some commercial pricing.
Both markets were due for a bounce after Monday's sell-off. Soyameal was the weakest of the complex, pressured by ongoing concerns that global feed consumption will be cut due to the spread of bird flu. In overnight news, Chinese buyers cancelled at least four contracts to import Indian soyameal on growing fears that bird flu could sharply cut commercial feed demand, Singapore traders said.
CBOT December soyameal closed 20 cents per ton lower at $173.90, with the deferreds steady to 90 cents weaker.
Firms were evening positions before Thursday's USDA November crop report, which was likely to show a bigger US soya estimate and 2005/06 ending stocks.
"Everyone is expecting bearish numbers but that's not new," a CBOT cash-connected trader said.
An average of analysts' estimates for the 2005 US soyabean crop was 3.024 billion bushels, above the government's October forecast of 2.967 billion.
The average of US 2005/06 soya end stocks was at 317 million bushels, compared with 260 million estimated last month by the government.
Slow farmer sales, which have firmed cash markets lent some support. But prospects that US supplies were plentiful, though in tight farmer hands, limited the recovery, traders said.
The US soya harvest was 96 percent complete, the USDA said late Monday. That was above the five-year pace of 91 percent harvested by early November.
There were large November deliveries on Tuesday, totalling 335 contracts. A First Options customer posted 130 lots and the key stopper was an R.J. O'Brien customer taking 111 lots.
Registrations with the CBOT were unchanged at 1,790 lots.
Traders were turning their focus to the planting and development of the South American crop. Brazil was dry over the past day, said Meteorlogix weather service. Rio Grande do Sul was expected to be mostly Wednesday through Sunday, giving farmers a chance to plant soyabeans.
Concerns continue about dryness in Argentina where soyabeans need more moisture.
Brazil's government agency IBGE said on Tuesday that Brazil's 2005/06 soyabean crop is forecast at 58.7 million tonnes, up nearly 15 percent from the 51.1 million tonnes harvested from last season's drought-stricken crop. But the estimate is below USDA's current Brazilian forecast for 60 million tonnes.
Malaysian palm oil futures closed flat to firm overnight, underpinned from a rebound in rival soyaoil and renewed buying interest in the physical sector.
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