Soyabean futures at the Chicago Board of Trade rallied early on Tuesday, gapping higher on the open, supported by a slower-than-expected US planting pace and strength in other commodity markets, traders said.
Gold and crude oil markets were strong on Tuesday. With the increased interest by investors in commodities, they tend to move together.
"The outside markets are up. There's no other reason to explain why beans are so strong," said one CBOT trader.
Buy-stops were hit early, driving the July soya contract 12 cents per bushel higher on the open.
July soya was 9 cents up at $6.08-1/2 by 10:55 am CDT. The less active May contract, now in delivery, was 10 cents higher at $5.96. Commodity funds were the big buyers. Traders estimated that funds bought about 5,000 contracts by the midsession; J.P. Morgan and Fimat USA each bought 1,000 lots.
But commercial pricing surfaced as soyabeans rallied. Term Commodities and Bunge each sold 200-300 July, traders said. Soyameal and soyaoil were also technically strong, supported by the energies. Meal was getting an added boost from export interest.
May soyameal was up $3.60 at $180.10 per ton, July meal was $3.60 higher at $180.80. May soyaoil was 0.27 cent per lb higher at 24.80 cents, July oil was up 0.28 at 25.20 cents. Overnight export business featured Taiwan saying it will tender for 12,000 tonnes of US soya on Thursday.
There was another round of heavy May soyabean deliveries, 1,206 lots, on Tuesday. They were met by scattered stopping. CBOT soya registrations were unchanged at 3,854 lots. There were no deliveries on the May soyameal contract. CBOT soyameal registrations with the CBOT were unchanged at 31 lots.
In soyaoil, there were 325 lots May deliveries and a Man Financial customer stopped 203 lots. CBOT soyaoil registrations fell to 6,688 lots late Monday, from the previous 6,693.