Chicago Board of Trade soyabean futures rose 1.9 percent early on Tuesday on technical buying and concerns about light domestic stocks, traders said. Bull spreading was featured. The CBOT May-November spread gained 18 cents on Tuesday, rebounding after giving up more than 50 cents since March 7. Traders said some buy stops were triggered when the May contract, which closed just below its daily high, breached the $14 a bushel level.
Soyameal futures also rose as supplies tightened despite weakening demand. Traders noted a slowdown in the pace of crushing due to poor profit margins at processors. Soyaoil futures firmed, snapping a seven-session losing streak that saw the front-month contract shed 5.4 percent of its value, on support from gains in crude oil prices.
May soyaoil failed to breach resistance at its 20-day and 200-day moving averages. Cash bids for soyabeans firmed at processors around the US Midwest as dealers tried to spark a fresh wave of farmer sales. Country movement has slowed in the past few weeks as the futures market retreated from a six-month high. Brazilian crushing association Abiove on Tuesday cut its forecast for the country's soyabean crop to a 86.1 million tonnes from 88.6 million tonnes in February. Taiwan Sugar Corp issued a tender to buy 15,000 tonnes of old-crop US soyabeans for delivery in May, traders said.
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