Soybean futures at the Chicago Board of Trade were firm early on Tuesday in a short-covering bounce after Monday's slide drove May to a 3-1/2 month low, traders said.
At 10:15 am CST (1615 GMT), CBOT soya was up 1 to 2-1/2 cents per bushel, with May up 2-1/4 at $5.74-3/4 per bushel. Soybeans found some footing as the market began to look a bit oversold technically.
The nine-day relative strength index for May closed Monday at 32. A value of 30 or below is considered a sign that the market is oversold, and when that happens it often triggers at least a mild short-covering bounce.
The May contract is trading below all key moving averages with first key resistance at its 20 day ma of $5.89-1/4. Technical support in May on Tuesday was at $5.70 per bushel and resistance was at $5.75. Soy exports remained quiet overnight. Cash basis bids for soyabeans in the Midwest were firm on Tuesday as dealers tried to generate farmer selling.
Soymeal futures were flat to 60 cents per ton higher with that market also boosted by a technical bounce. Traders said Iowa Grain was a featured buyer of 800 May. The May contract was 10 cents per ton higher at $173.40 per ton.
Soymeal traders continue to deal with the global spread of bird flu and its potential impact on soyameal demand. But industry publication Oil World on Tuesday said global soyameal demand remains strong despite the spreading disease.
Soyoil futures were 0.03 cent per lb lower to 0.06 higher, with May down 0.01 at 22.90 cents per lb.
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