The Chicago Board of Trade soyabean market rallied on Friday, breaking out of its recent trading ranges when it gapped higher on the open amid a fresh round of speculative buying, traders said.
Strong CBOT soyaoil prices lent support as that market made contract highs in all months except May. A strong close in soyaoil on Thursday when the July contract broke through the week's previous high of 25.45 cents per lb spilled over to Friday. Prospects for increased demand for soya biodiesel amid rising energy prices remains supportive.
Friday was also the last day of the month, spurring index fund buying - either establishing fresh long positions in either soyabeans or soyaoil or covering shorts in soyabeans, traders and analysts said.
By 11:20 am CDT (1620 GMT) May soyabeans were up 17-1/4 cents per bushel at $5.92-1/2 and July was 16 higher at $6.06-1/2 - after gapping higher on the open.
May soyameal was up $3.60 per ton at $174.80 and July meal was $3.30 higher at $175.20.
On a bearish note for soya, heavy rains were expected to move across the US Corn Belt over the next three to five days. That will stall planting and could lead to fewer corn acres as farmers switch to soyabeans - if time and wet fields prevent farmers from getting in all their intended corn acreage.
First-day deliveries for May soyabeans and soyameal were within trade expectations. But there were fewer-than-expected soyaoil deliveries, which was supportive.
In soyabeans, there were 1,266 deliveries which were met by scattered stopping. Traders expected from 1,000 to 2,000 lots.
CBOT soyabean registrations were at 4,024 lots late Thursday, up from 3,656 lots.
There were no soyameal deliveries, though trade expectations ranged from zero to 200 contracts. CBOT soyameal registrations were at 31 lots, unchanged from the previous day. In soyaoil, there were 916 May soyaoil deliveries met by scattered stopping.