Chicago Board of Trade soyabean futures ended higher on Thursday after a volatile session, tracking wheat which climbed the 30-cent limit to hit an 11-year high on strong weekly export sales data, traders said. "It was a pretty wild day. Wheat was up 30 cents at one point. Soyabeans did tend to follow the wheat market," said Jack Scoville, analyst with The Price Futures Group in Chicago.
When wheat slipped 10-15 cents on profit taking past midday, soyabeans turned mixed to lower. Both markets came back going into the close. "Soyabeans are also looking at currency as a driver. The dollar is down hard today," he added. A weak dollar is a supportive technical signal, as the weakness can lead to increased demand for US products like soyabeans.
August soyabeans closed 6-1/2 cents per bushel higher at $8.21-1/2 hitting a high of $8.30-3/4 and falling to $8.08-3/4. New-crop November ended 7-1/4 firmer at $8.46-1/2. The products were just as volatile, with meal gaining on oil by the close. Soyameal closed $3 higher to 40 cents weaker, with August up $2.70 at $217.70 per ton.
The oil market ended 0.11 cent lower to 0.05 cent higher; August was down 0.03 cent at 36.59 cents per lb. Commercials were featured buyers across the complex, traders said.
UBS Warburg bought 1,000 January soyabeans and were actively buying August 2008, traders said. Commodity funds sold the complex; 6,000 soyabean contracts, 3,000 soyameal and 4,000 soyaoil. Crop weather was viewed as bearish, traders said. More rain than was expected moved through the dry areas of the eastern US Midwest overnight.
Additional showers were expected through on Saturday, with no extreme heat likely through the weekend, a forecaster said. Monthly US Census Bureau crush data were supportive for soyabeans and soyameal. The bureau reported that 148.69 million bushels of soyabeans were crushed during June, within estimates for 148 million to 149 million and above the June 2006 tally of 137.4 million.
US June soyameal stocks were at 317,064 tons, below an average of analysts' estimates for 326,000 tons. However, soyaoil stocks were bigger than estimated at 3.389 billion lbs. That compared to estimates for 3.310 billion to 3.337 billion. Weekly export sales data for the soya complex was considered market neutral for soyabeans and soyameal, coming in close to expectations.
However, soyaoil exports from last week were higher than expected. The US Agriculture Department reported that 316,700 tonnes of soyabeans were sold for export last week (288,400 tonnes old-crop), compared to estimates for 300,000 to 500,000 tonnes. US soyameal export sales last week totalled 112,100 tonnes (87,000 tonnes old-crop), near the high end of estimates for 75,000 to 125,000 tonnes.
US soyaoil export sales were 33,700 tonnes (old-crop) last week, which was above estimates for zero to 10,000 tonnes. Midwest spot basis bids for soyabeans were steady to firm on Thursday, after weakening for weeks. Farmer sales were quiet.
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