Soyabean futures at the Chicago Board of Trade surged more than 20 cents per bushel, or 4 percent, early Thursday on technical buying, following the strength in corn to a 10-year top, traders said.
Soyabean futures made contract highs in all nearby months on technical buying.
November soyabeans were up 17 cents at $6.62 per bushel by 10:15 am CST (1615 GMT), after touching a contract top of $6.69. January was 16-1/4 cents higher at $6.74-1/2.
The daily price limit in soyabeans is 50 cents. The strength in corn to a 10-year high, with December touching its 20-cent price limit, was supportive to soya as it tries to keep pace amid a battle between the two commodities to secure enough acres for next year's crops. Corn rallied amid private forecasts that pegged this year's US crop below USDA October estimates.
Soyabean soared even though analysts expect this year's US crop to be a bin buster. Brokerage firm FC Stone late Wednesday pegged the US soya crop at 3.268 billion bushels, above USDA's forecast in October for 3.189 billion - an all-time high if realised.
Analytical firm Informa Economics also released its crop estimates on Thursday, which was above USDA's October forecast, traders said. Informa forecast the 2006 US soya crop at 3.246 billion bushels, traders said. USDA will issue its next crop estimate on November 9.
Weekly export sales data for soya was mediocre, coming in within expectations. The government reported that 640,200 tonnes of US soyabeans were sold for export last week, compared with estimates for 550,000 to 750,000 tonnes. Midwest spot basis bids for soyabeans were mixed early Thursday amid scattered harvest sales, dealers said.
There were 617 November soyabean deliveries, which were met by strong commercial stopping. The ADM house account put out 400 lots and stopped 546. The products were strong on technical buying, following the strength across the other CBOT markets. December soyameal was up $5.10 per ton at $198.20, with the back months up $4.20 to $5.40. December soyaoil was 0.47 cent per lb higher at 27.94 cents, with backs up 0.40 to 0.73 cent. Several of the deferred meal and oil contracts made new highs.
Export sales were disappointing for soyameal and came in within expectations for soyaoil.
USDA on Thursday said export sales of US soyameal last week totalled 58,300 tonnes, below trade estimates for 75,000 to 150,000 tonnes. US soyaoil export sales were at 5,800 tonnes, within estimates for 2,000 to 8,000 tonnes.
The US Census Bureau reported on Thursday that US soyaoil stocks were at 2.968 billion lbs in September, which was below the August tally of 3.061 billion. Methyl ester use was 176 million lbs in September, down from the upward August revision to 186 million lbs.
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