Chicago Board of Trade soyabean futures rose to contract highs early on Thursday as the market remains technically strong and jitters about dryness in the western belt sparked additional buying, traders said.
The monthly crop data released by the US Department of Agriculture before the open was market-neutral for soyabeans, they said. July soyabeans were up 13 cents at $9.04 per bushel, a contract high, by 11:50 am CDT (1650 GMT). August was up 13 at $9.09.
"The areas that have been light on rain - western Iowa, eastern Nebraska, western Minnesota, eastern South Dakota pretty much missed the rains again and they're going to it miss it," said Roy Huckabay, analyst with The Linn Group in Chicago.
"Corn would have been down if it wasn't for weather. Weather has added a little bit more positive element to the beans too," he added. The products were also strong, especially soyameal which rose to fresh contract highs across the board. Soyaoil made new highs in a few months, including front-month July.
July soyameal was up $2.60 per ton at $249, after making a contract high of $249.20. The back months were $3.80 to $4.80 firmer. Soyaoil was up 0.09 to 0.23 cent per lb, with July up 0.23 at 37.78 cents per lb - below the contract high of 37.85 cents made earlier.
USDA estimated 2007/08 US ending soya stocks at 245 million bushels, 75 million bushels lower than its June forecast. The drop included the acreage reduction as reported in the USDA's June 29 report. The new-crop carryover was not as low as most people anticipated, with the average analysts' estimates at 225 million. "But still from a fundamental standpoint is constructive," said Anne Frick, oilseed analyst with Prudential Financial.
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