Soyabean futures at the Chicago Board of Trade were called to open 10 to 15 cents per bushel higher on Wednesday, continuing to recover from this week's slide to a four-week low, traders said. Uncertainty over the October USDA crop report to be issued Friday, a weaker dollar and fresh export business were supportive factors.
There was speculation that the government could cut its estimate of the US soyabean crop to reflect a 1-2 million drop in soya acreage while corn could see a boost in acreage. Friday's report will be the first of the year in which USDA could make an acreage adjustment based on crop insurance data, analysts said. On the export front, there was talk that China bought two cargoes of US soyabeans out of the Pacific Northwest.
The products were expected to open firm on follow-through strength from Tuesday's rally. CBOT soyameal was seen opening $5 to $8 per ton higher and soyaoil 0.20 to 0.40 cent per lb up. Overnight trade was strong, with soyabeans up 1 to 17-3/4 cents per bushel, soyameal $2 to $7.70 per ton higher and soyaoil unchanged to up 0.42 cent per lb.
Overnight, there were heavy October soyameal deliveries of 1,110 contracts. Stoppers were scattered, with customers of Man Professional and Fimat USA taking 346 and 392 lots, respectively. Soyaoil deliveries were also large at 1,342 contracts and they were met by scattered stoppers.
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