The Chicago Board of Trade soyabean market was volatile early on Tuesday, stabilising by mid-morning after an early technical rally, traders said.
January soya was up 2-1/2 cents at $6.11 per bushel by 10:40 am CST (1640 GMT). March was up 2 cents at $6.22-1/2, after rising 7 cents to $6.27-1/2 early in the session.
Rand Financial was featured buying 1,500 March, traders said.
Funds were even or turned net long in CBOT soya futures/options after a rally on Monday, when funds covered short positions, traders said.
Strong Chinese soyameal prices remained supportive amid talk of improved global feed demand as bird flu concerns ease a bit.
Also supportive were reports out of Europe that demand for poultry was picking up after languishing for the past two months as consumers stopped buying chicken and other poultry products on fears that the disease could be spread through food.
There was little change in South American weather outlooks for soyabeans, Meteorlogix forecaster Joel Burgio said. Conditions were generally favourable for crop development, but there were increasing concerns about dryness in Argentina and southern Brazil, he said.
Some rains fell over the western and northern areas of Argentina's soya region on Monday, but most of the country was dry. Conditions should stay dry with a few storms possible on Friday, Burgio said.
Southern Brazil was generally dry, except for some showers in northern Parana, and should stay mostly dry until the weekend. Northern Brazil could get 0.30 to 1.0 inch of rain on Wednesday.
Traders continued to roll January positions forward before first notice day on December 30. Midwest spot basis bids for soyabeans were weaker at interior locations early Tuesday, due to Monday's CBOT rally and scattered country sales. traders said. But spot river bids were higher as barge freight stabilised.
Soya products were mostly firm on follow-through technical buying.
January soyameal was up 10 cents at $198.70 per ton, while March meal was up 80 cents at $200. January soyaoil was up 0.12 cent at 21.69 cents per lb., while March was 0.08 higher at 21.99 cents.
Soyameal closed technically strong on Monday, after climbing to four-month highs.
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