Soybean futures at the Chicago Board of Trade closed higher on Friday as traders covered short positions before the weekend. The market was due for a bounce after closing lower the past six sessions, traders said. There was also talk of fresh buying interest by China in two or three cargoes of US soyabeans. That coincided with firmness in nearby CIF soya values at the US Gulf.
CBOT soyabeans closed 3-3/4 to 5 cents per bushel higher. January was up 5 cents at $5.25-3/4, but 22-3/4 cents lower on the week.
The nine-day relative strength index for the January contract reached 40 by Friday's close, up from 34 on Thursday. An RSI of 30 or below is viewed as a technically oversold market.
Commercial bull spreading and outright buying were supportive. ADM Investor Services spread 800 January/March and 100 January/May, traders said.
Local traders were featured speculative buyers ahead of the weekend, while funds were net sellers of about 1,000 lots.
This year's record US soya crop and a lagging export pace have acted as an anchor on the market.
Good crop weather in South America leading to outlooks for a big 2005 soya harvest also weighed on prices this week. But Asian soya rust spread to soya crops in Mato Grosso and Goias states from Parana, crop researchers said late Thursday.
Soymeal futures closed mostly higher, supported by the climb in soyabeans. The market settled $2.30 per ton higher to 10 cents lower, with December soyaameal up $2.30 at $154.30. The featured buyer was commercial Cargill Inc with 1,700 March, traders said.
A firm US cash soyaameal market amid talk that US processors are cutting back on crush due to poor margins was supportive.
The meal market opened weaker. Viewed bearish was the fact that 117 deliveries were posted against the December contract on Friday. Customers of Man Financial, Iowa Grain and R.J. O'Brien stopped the soyaameal. Meal registrations with the CBOT were unchanged at 243 lots on Thursday night.
CBOT soyaoil futures settled higher on a short-covering bounce before the weekend. Also supportive were light December deliveries of only one lot on Friday and talk that China bought South American soyaoil, traders said.
The market was 0.03 to 0.25 cent per lb higher, with December up 0.25 at 20.41 cents.
Malaysian palm oil futures closed mostly firm.