Soybean futures at the Chicago Board of Trade were boosted on Wednesday by a fund-led rally in soybean oil, traders said. Speculative interest in soybean oil remains high amid prospects for increased demand for biodiesel.
About 90 percent of all US biodiesel is made from soybeans. The soyoil market remains technically strong, trading above its 50- and 100-day moving averages.
November soybeans were 2-1/2 cents per bushel higher at $5.65 by 11 am CDT (1600 GMT). The deferreds were up 2 to 2-1/2 cents.
October soyoil was 0.47 cent per lb firmer at 24.27 cents, with the back months 0.15 to 0.55 cent up.
Funds were buyers, especially of soybean oil. Refco Investor Services, R.J. O'Brien and Refco were among the buyers of oil. But commercials, ADM Investor Services, Cargill Inc and Bunge were oil sellers.
Soybeans were also recovering from Tuesday's sell-off tied to outlooks for a big US soy harvest. But prices kept near current levels as traders were reluctant to take on a position before USDA's October 12 crop report.
Soymeal futures remained the weakest of the complex. October soymeal was down $1 per ton at $162.70, with deferreds down 70 cents to $1.20. US cash soymeal markets remain weak as processors stepped up their crush amid a fresh supply of harvested soybeans, traders said.