Chicago Board of Trade soybeans ended mostly higher on Monday on talk of potential purchases by top US soy customer China and on fears that tight US soy supplies still needed to be rationed, traders said.
July 2004 and deferred contracts set fresh highs, as traders contemplated the government's December forecast for a 27-year low of 125 million bushels in US 2003/04 soybean ending stocks on August 31, 2004, the end of the marketing year.
Nearby CBOT soybean futures failed to top last week's highs, but were supported by positioning ahead of next Monday's key government crop report.
The US Department of Agriculture on Monday morning will release its final 2002/2003 US soybean crop production figure, the December 1 US soybean stocks tally and its usual monthly supply and demand data.
Overnight soy export business was quiet, offering little confirmation of fresh sales to China, but the USDA early Monday reported 20.638 million bushels of US soybeans were inspected for export last week.
That is below CBOT trade estimates for 23.0 million to 28.0 million, but above the previous week's inspections of 17.248 million bushels. The USDA inspections tally included 12.329 million bushels for China.
Cash US Midwest soy basis bids were mixed on Monday, while midday Gulf CIF basis bids were firm, dealers said.
CBOT traders also noted some support from the posting of only 199 deliveries on Monday against the January soybean contract. A Man Financial customer stopped 188 lots. Registrations were unchanged at 560 lots.
There were no deliveries posted on Monday against the January soymeal contract, while soyoil deliveries on Monday totalled 169 lots.
Registrations of soyoil with the CBOT late Wednesday totalled 4,885 lots, up from the previous day's 4,815 lots.
Good crop-growing weather in Brazil and Argentina, the second- and third-largest global soy producers, limited CBOT soy gains, brokers said.
CBOT soyoil ended up 0.48 to 0.70 cent per lb, with March up 0.58 at 28.49 cents per lb. Funds bought about 1,700 lots and commercials were also net buyers, traders said.
CBOT soyoil was supported on Monday by a firm close in rival Malaysian palm oil futures, they said.
CBOT soymeal futures settled up 40 cents per ton to down $2.50, with March down 40 cents at $245.30 per ton.
Commodity funds sold about 1,000 lots and commercials were light net sellers, traders said.
Cash US soymeal basis offers were steady on Monday, dealers said.
In Canadian oilseed crush for the week ended December 31, canola crush was up 12.2 percent and soybean crush down 19.1 percent.
The CBOT January crush margin closed up 1.91 cents at 49.81 cents.