US soybean futures on the Chicago Board of Trade hit a one-week top on Tuesday on follow-through technical strength that attracted a fresh inflow of capital from investors. Monday's strong technical close after the highs and lows exceeded the previous trading range, an outside day chart formation, is typically a buy-signal for chartists.
Soy complex ended firm despite a bounce in the dollar, typically a sell-signal for commodities. November soybeansended 9-1/4 cents higher at $10.06-3/4 per bushel. January up 12-1/2 at $10.10-1/2. December soymeal closed up $3.70 per ton at $306.40; deferreds up $3 to $4.10.
December soyoil ended up 0.74 cent per lb at 37.53 cents; deferreds up 0.74 to 0.82. Commodity funds bought an estimated 5,000 soybean contracts, 1,000 soymeal and 2,000 soyoil. More active US harvest stirred commercial short hedges. Also noted was oil/meal spreading by processors. Cargill spread 300 December oil/meal; Tenco spread 1,000 January oil/700 January meal; ADM 100 July oil/meal.
Option volatility in nearby soybean months increased about 2.5 percent amid a pick up in put and call buying-traders. Favourable weather for US harvest this week. Autumn rains put US soy harvest 3-4 weeks behind. USDA late Monday said 51 percent of US soybean crop harvested, below trade estimates for 55 to 60 percent and behind the five-year average of 87 percent.
No deliveries against the November soybean contract overnight. US Midwest spot basis bids for soy weaker early Tuesday as harvest sales pick up. US Gulf CIF basis bids/offers also slip on movement. Oil World cuts Argentine 2010 soy crop forecast to 50 million tonnes, from 52 million. Oil World expects palm oil prices to rise starting in December. Malaysian palm oil falls 0.8 percent on concerns over output.
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