US soyabean futures surged 1.7 percent on Tuesday on signs that domestic processors kept their plants running at high levels even as supplies dwindled, traders said. Wheat futures gained 2.3 percent, supported by concerns escalating political tensions in Ukraine would disrupt shipments of the grain from the key exporter.
The gains in wheat pulled corn higher after a weak start but forecasts for warm temperatures and dry conditions across the US Midwest during the next 10 days limited the gains. The improving weather should allow farmers to make quick work of planting, which has been delayed across much of the region. The soya rally erased much of the losses posted during the last week following Chinese defaults on imports that showed demand from the world's biggest buyer of the oilseed was waning.
At 11:55 am CDT (1655 GMT), Chicago Board of Trade soyabeans for May delivery were up 24-3/4 cents at $15.01 a bushel, threatening to break through last week's high of $15.12. That would mark the highest price for the front-month soyabean contract since July 23, 2013. The National Oilseed Processors Association on Tuesday said its US members crushed 153.840 million bushels of soyabeans in March, up from 141.612 million in February.
Analysts had forecast a monthly crush of 146.1 million bushels, according to a Reuters poll. The crush was the heaviest for March since at least 2001 and threatened to further reduce the already tight domestic stockpile of US beans. CBOT wheat for May delivery was up 15 cents at $6.93-3/4 a bushel, briefly breaking above the psychologically key $7 a bushel level and hitting its highest since March 28. CBOT May corn was up just 1-1/2 cents at $5.04-1/2 a bushel.
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