Soyabean futures at the Chicago Board of Trade climbed on Tuesday, lifted by the strength in soyaoil amid higher energy markets, traders said. March soyabeans closed 11-1/2 cents higher at $7.21 per bushel. March broke through its 10-day moving average of $7.15-3/4, after closing technically weak the night before. The deferred months settled 6 to 13-1/2 cents up.
"With the energies higher, it's lifting the oil and corn market. There was some spec buying and stops were hit" in soyabeans, one CBOT trader said. The grains and oilseeds tend to track the New York crude oil market given the expanding green fuels industry. Crude oil closed $2-$3 per barrel higher on expectations that distillate stocks are lower this week. Natural gas and heating oil markets were also strong.
Firms were covering short positions in soyabeans, traders said. Citigroup, Iowa Grain, Rand Financial, Man Financial, and Goldenberg Hehmeyer each bought 300-500 March in pit trade, traders said. The soyaoil market was on fire, closing 0.64 to 0.70 cent per lb higher, with March up 0.64 cent at 29.46 cents.
Soyaoil got an extra boost from commercial buying. Tenco, ADM, FC Stone were big buyers of soyaoil, including deferred months of May, July and January, traders said. Soyameal followed along. March meal ended $2 higher at $208.40 and the back months were 50 cents to $2.10 higher.
Volume in soyabeans and soyaoil was large while soyameal was moderate. In soyabeans, an estimated 100,534 futures and 19,792 options traded. Soyaoil trade was seen at 37,964 futures and 2,955 options. Estimated soyameal volume was 27,276 futures and 2,074 options.
Commodity funds bought about 3,000 soyabean futures, at least 4,000 soyaoil and were close to even in soyameal, traders said. Overhanging the soyabean market were ample nearby supplies and expectations of a big South American soya crop as weather was favourable this growing season. However, there were increasing concerns about dryness in Argentina, which could take the top edge off of yields.
Argentina was expected to be mostly dry this week, according to DTN Meteorlogix.
Midwest spot basis bids for soyabeans were steady late Tuesday with farmer sales quiet, dealers said. Cash markets have been weak, with spot bids at terminal markets in the western Midwest 45 cents under the CBOT March contract.
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