Soyabean futures at the Chicago Board of Trade closed higher on Wednesday with the market recovering from the declines on Tuesday and on soya/corn spreading, traders said. Active seedlings of corn in the United States also supported soya because of the implications for fewer soya acres this year.
CBOT soya closed 6-1/4 to 10 cents per bushel higher, with May up 7-3/4 at $7.33-3/4 per bushel. July was up 8 at $7.47-1/2 and new-crop November was up 8-1/2 at $7.77-1/4. Soyabeans acreage in the United States is expected to fall sharply this year because 10-year highs in corn prices are encouraging heavy production of that feed grain.
Improved crop planting weather is expected in the US Midwest over the next five to six days, followed by increased chances of rain, DTN Meteorlogix weather said on Wednesday. Only minor slowdowns have been noted in South America's soyabeans harvest areas. Drier weather in Argentina is boosting soya harvest while some wet weather in southern Brazil is slowing harvest, Meteorlogix said.
Statistics Canada on Wednesday pegged Canada's 2007 soya stocks at 1.916 million tonnes, up 15.0 percent from last year's 1.666 million. Canola stocks for 2007 were estimated at 4.277 million, down 16.4 percent from last year's 5.116 million. Exports were quiet overnight, cash basis bids in the Midwest were mostly steady amid slow farmer selling and deliveries on the May contract totalled 1,144 lots amid scattered stopping.
Soyameal closed $1.80 to $2.90 per ton higher, with May up $2.40 at $196.90 per ton. Deliveries on the May contract of 411 lots met scattered stopping. Soyaoil closed 0.17 to 0.27 cent per lb. higher, with May up 0.22 at 32.84 cents per lb. A strong rally overnight in Malaysian palm oil boosted soyaoil futures. Deliveries of soyaoil on the May contract were light at 130 lots amid strong commercial stopping, another supportive factor for the May contract.
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