Soyabean futures at the Chicago Board of Trade rallied early on Friday, tracking the strength in soyabean oil after Malaysian palm oil closed strong, traders said. July soyabeans were up 16-3/4 cents at $8.44-1/4 per bushel by 11 am CDT (1600 GMT).
The back months were 11 to 16-3/4 cents up, with a few contracts making highs. July soyabean oil was 0.75 cent per lb higher at 35.91 cents, with the deferreds up 0.63 to 0.76 cent. Soyameal followed along, up $2.90 to $4 per ton, with July $3.40 higher at $233.80.
Soyabeans and soyabean oil have been tracking the moves in volatile Asian palm oil markets, which have rallied to multi-year highs this month amid good demand for edible oils. Malaysian palm oil ended 2.4 percent higher on Friday amid stronger crude oil prices, Asian traders said.
Indonesia's decision to raise crude palm oil export taxes was also supportive, they added. Adding to the bullish tone were worries about the dryness in the eastern Corn Belt. A lack of rain this season was stressing corn and soyabeans.
The eastern Midwest was expected to get some light to moderate rain of 0.25 to 0.75 inch, locally heavier, early next week, a DTN Meteorlogix forecaster said. "At this point, we're looking at light to locally moderate showers next week. It will help but not turn the drier-than-normal conditions around," Meteorlogix forecaster Mike Palmerino said.
The continued dryness in the eastern belt was expected to result in lower crop ratings, analysts and traders said. Some expected the government to lower its corn and soyabean ratings by 2 to 4 percentage points in the good-to-excellent category in Monday's weekly crop progress report.
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