Soyabean futures at the Chicago Board of Trade turned up by early Tuesday, led by March and helped by a strong cash market, traders said. The March/May spread was firming as CIF soya values at the US Gulf were strong as nearby supplies were tight. Recent transportation slowdowns in moving beans to US Gulf export terminals and tight-fisted farmers keep exporters and processors scrambling for beans.
March soyabeans were up 3-1/2 cents per bushel at $5.23-1/2 - and at nearly a 2-cent premium to May. May soyabeans were 1-3/4 cents higher at $5.22 by 10:30 am CST.
The other months were steady to 1-1/2 cent firmer.
However, soyabeans opened lower after the market failed technically on Monday, hitting resistance at $5.25 in March.
Overnight export business was viewed routine. Taiwan bought 56,000 tonnes of US soyabeans.
China, the world's top buyer of soyabeans, is turning to competitively priced South American soyabeans in an attempt to keep costs to a minimum, Asian traders said. There were also mounting fears about the spread of bird flu in Asia, which may decimate demand for soyameal feed from poultry farmers.
Soyameal futures turned mixed, with the March meal up 50 cents at $156.40 per ton, following the strength in nearby soyabeans. A firm US cash soyameal also remains supportive. The back months were 30 cents to $1 lower. Overnight export business featured South Korea tendering to buy 55,000 tonnes of soyameal for feed production.
The soyaoil market also turned up, trading 0.06 to 0.08 cent per lb higher, after March soyabeans climbed.
March soyaoil was up 0.07 cent at 19.81 cents. Malaysian palm oil futures closed lower on Tuesday. There were no deliveries against the expired January contract.
Current low soyaoil prices are not justified, given low stocks in major producing countries, Hamburg-based newsletter Oil World said.