Soyabean futures at the Chicago Board of Trade were called to open 7 to 10 cents per bushel higher on Thursday, lifted by prospects for demand to pick up as top world soya buyer China considers cutting its import duty on soyabeans, traders said.
"China is short soyabeans and soyameal," one CBOT soya trader said. Overnight, China said it was considering cutting its import duty on soyabeans to 1 percent from 3 percent for three months to help ease inflation pressures, a source close to the government said.
The news drove soyabean prices to contract highs overnight, with November notching a new top of $9.80. The closing e-trend was up 1-1/2 to 10-1/2 cents. Adding to the bullish tone were strong CIF values for soyabeans at the US Gulf - rising the past two days as processors and exporters tug for nearby supplies - and a record low in the dollar.
Any time the dollar eases it's a supportive signal for export business, making US commodities more competitively priced. Weekly export sales for soyabeans were strong but within expectations. USDA reported that 513,600 tonnes of US soyabeans were sold for export last week, versus estimates for 300,000-650,000 tonnes.
Concerns about continued hot, dry weather delaying early planting of the Brazilian soyabean crop in Mato Grosso remained supportive. The products were also seen opening firm, with soyameal taking the lead. Soyameal was expected to open $3 to $5 per ton higher and soyaoil up 0.10 to 0.15 cent per lb, traders said.
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