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US soyabean futures closed higher on Friday on support from USDA's October crop report that showed a lower-than-expected 2009 US soyabean crop. Also, support from excessive wet weather including flooding and forecasts for a freeze by the weekend in the US harvest region. CBOT November soya up 28 cents per bushel at $9.64.
Funds bought 6,000 lots. USDA pegged 2009 US soyabean production 3.250 billion bushels, below an average of analysts' estimates for 3.281 billion. USDA pegged 2009/10 US soya ending stocks 230 million bushels, below an average of analysts' estimates for 249 million. USDA raised its forecast for 2009/10 Argentine soyabean production but left unchanged its forecast for Brazilian production.
US grain dealers post 10 cents protection on soyabean bids after USDA data. Soya crops in southern and eastern US growing area may be harmed by excessive rainfall and flooding and early harvest is being hampered. A weekend freeze in the US also may harm the portion of the 2009 crop that is not mature.
US cash soyabeans basis bids were steady to lower on Friday morning. CBOT December soyameal up $7.60 per ton at $297.30 per ton. Following soyabeans. Funds bought 1,000 lots. CBOT December soyaoil up 0.63 cent per lb at 34.91 cents per lb. Spillover support from rallying soyabeans. Funds bought 2,000 lots. Palm jumps on rumours of strong exports.

Copyright Reuters, 2009

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