Soyabean futures at the Chicago Board of Trade closed higher on Monday amid technical fund buying, firm cash markets and commercial bull-spreading, traders said.
Pit sources said commercials were actively buying the January and selling the March contract, signal commercials were having trouble originating spot cash soya from farmers. "I think it was a technical rally that was induced by our first real cold weather snap which a lot of times slows transportation and increases meal consumption," said Don Rose, analyst for US Commodities.
CBOT Soya closed 5-1/2 to 10-1/2 cents per bushel higher, with January up 10-1/2 at $5.73-1/4 per bushel. March was up 9 at $5.79-1/2. US cash markets were underpinned by a lack of farmer sales, traders said.
Commodity funds expanded their net short positions across the soya complex during the week ended November 29, leaving the market vulnerable to a technical fund short-covering bounce. The CFTC reported late on Friday that large speculators in soyabean futures/options combined were long 41,811 lots, down 1,040 from the previous week and short 72,472 lots, up 15,069 lots.
In soyameal futures/options combined, large speculators were long 17,798 contracts, up 1,318, and short 30,555 lots, up 6,761 lots. For soyaoil futures/options, they were long 20,992, down 1,105 and short 39,283 contracts, up 8,184.
A lagging US export pace, worries about global feed demand due to bird flu, and generally favourable conditions for the planting and development of the South American soyabean crop were bearish.
Some concerns surfaced last week about the dryness in Argentina but scattered showers fell across crop regions over the weekend.
Mostly dry conditions were forecast for the northern areas for the next seven days in Argentina, said Meteorlogix weather on Monday. Brazil also saw rains over the weekend with more expected this week.
The CBOT said it was lowering the margin requirements to trade soyabean and soyaoil and raising them for soyameal effective with the on Monday night session. Initial speculative soyabean margins were reduced to $1,013 per contract from $1,080.
Soyaoil margins were cut to $608 to from $675 and soyameal margins were raised to $810 from $709.
CBOT soyameal futures closed $1.60 to $3.20 per ton higher, with December up $1.80 at $175.60 per ton.
January was up $1.70 at $175.40 per ton. Traders said soyameal was following soyabean higher.
Underpinning soyameal were no December deliveries since the start of the delivery period last week. Registrations with the CBOT were unchanged at 238 lots.
Soyaoil closed 0.23 to 0.37 cent per lb. higher, with December up 0.37 at 21.66 cents per lb. January was up 0.35 at 21.91. Traders said soyaoil also followed the soyabean market. Gains in crude oil also may have given soyaoil some support since soyaoil is a key ingredient in the growing bodiless industry. A technical recovery and gains in Malaysian palm oil overnight also lent support.
In soyaoil, there were 718 December deliveries met by scattered stopping.
Registrations with the CBOT were unchanged at 4,623 lots.