Chicago Board of Trade soyabean futures rallied early Tuesday after the government reported the US soyabean crop had deteriorated last week more than traders had expected, brokers said.
Speculative buying was also noted early, they added. The US Department of Agriculture reported late Monday that 69 percent of the US soyabean crop was in good to excellent condition as of Sunday, down 4 percentage points from last week's rating.
Traders had expected the USDA to report a drop of 1 to 3 percentage points due to last week's unseasonably cold temperatures, including record daily lows for some locations.
Soyabeans were up 8-3/4 cents to 20 cents per bushel, with September up 20 cents at $5.95-1/2 and November up 19-1/4 cents at $5.88.
Caylon Financial bought 500 November, R.J. O'Brien bought 400 November, DT Trading bought 300 November and Man Financial bought 200 November early, brokers said. Refco Inc sold 200 November, they added.
Tuesday's rally boosted nearby September soyabeans into overbought territory, with the nine-day relative strength index early Tuesday reaching 70, the level typically seen as showing technically overbought market conditions. Soyameal futures were up $5 to $10 per ton, with September up $10 at $199.50 and December up $5.90 at $177.80.
Soyaoil futures were up 0.45 cent to 0.71 cent per lb, with September up 0.51 cent at 23.41 and December up 0.71 cent at 22.50 cents.