Chicago Board of Trade soyabean futures closed higher on Friday on strong demand for US supplies as the government confirmed large export sales for an eighth consecutive trading day, traders said. The benchmark CBOT November soyabean contract settled 17-3/4 cents higher on the day at $9.74-1/2 per bushel, holding above its 200-day moving average of $9.56-1/2. Still, the contract ended down 2.8 percent on the week.
The US Department of Agriculture through its daily reporting system said private exporters sold 498,000 tonnes of US soyabeans to China for 2016/17 delivery. The announcement marked the eighth straight daily announcement of US soyabean sales, with new-crop soyabean sales totalling nearly 2.5 million tonnes in that time. China's National Grain Trade Center reported sales of 101,726 tonnes of soyabeans at auction of state reserves, out of a total of 602,270 tonnes available at auction. Traders said the light sales total suggested imports could remain strong.
Strong US soya crop prospects continue to hang over the market. Generally favorable crop weather is forecast for much of the Midwest over the coming week, with more than half of the country's crop in the key pod-setting stage of development. Private analytics firm Informa Economics on Friday projected US 2016 soyabean production at 3.958 billion bushels with a yield of 47.7 bushels per acre, above the most recent USDA forecast.
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