Chicago Board of Trade soyabean futures rose more than 1 percent early Wednesday, rebounding after sliding nearly 90 cents per bushel this week as changing weather forecasts kept prices swinging, traders said.
"A 15 cent rally after a 90 cent break isn't beyond expectations. Beans and corn overdid it with the fund selling the last couple days and the weather forecast is positive given the levels we are trading now," said one cash-connected trader.
August soya was up 13-1/4 cents at $8.47 per bushel by 10:30 am CDT (1530 GMT). August was approaching nearby resistance at $8.54, its 20-day moving average.
November was 13 higher at $8.73-1/2 while the other months were up 11-1/2 to 14. Tenco, Rand Financial and UBS Warburg each bought 200-300 November, traders said.
Beneficial rains moved through the Midwest this week with more showers in the forecast, recharging topsoil moisture ahead of August - the key yield-determining period for soyabeans. That pressured corn and soya prices on Monday and Tuesday.
August soyameal was up $5.70 per ton at $227.90, after falling below its 10-, 20-, 50- and the 100-day moving averages this week. The back months up $2.40 to $9.50.
Soyaoil was 0.17 to 0.34 cent per lb higher, with August up 0.32 at 37.24 cents. Spot basis bids for soyabeans were up as much as 12 cents at Midwest river terminals early Wednesday due to a stronger CIF market at the US Gulf after values fell to historically levels, dealers said. Basis bids were steady at interior points with farmer sales quiet.
Comments
Comments are closed.