US MIDDAY: soyabeans firm

27 May, 2006

Soyabean futures at the Chicago Board of Trade were up early Friday following soyaoil and crude oil higher amid a booming soya biodiesel market, traders said. Soyaoil has been hinged to the moves in crude oil this year as the United States looks to build its green fuel industry.
The rally in wheat and corn were also supportive.
But the soya market was hit to see a runaway in prices early Friday ahead of the holiday weekend. The fundamental outlook for soyabeans remains bearish.
CBOT grain and soya markets will be closed for the Sunday night e-session and Monday's open outcry session for the US Memorial Day holiday. Markets reopen Monday night.
July soya was up 1-1/4 cent at $5.85-1/2 per bushel by 10:30 am CDT (1530 GMT). The back months were 1-1/2 to 4 cents higher. July soyaoil was 0.18 cent higher at 25.27 cents per lb, with the back months up 0.17 to 0.20. July soyameal was up 30 cents at $173.80 per ton and the backs were 50 to 80 cents higher.
Soyameal has drifted higher this week after hitting a low of $170.50 in the July contract on Wednesday. J.P. Morgan bought 1,000 July soyameal, traders said.
Man Financial, Fimat USA and Refco-Man each bought 500 July soyabeans. Refco-Man was an early seller of 1,000 July, traders said.
Farmers are poised to plant the largest amount of acres to soyabeans in history and current stocks are already burdensome.
A turn to warmer weather in the US Midwest this week was improving germination of the newly seeded soyabean crop.
Friday is the last trading day and expiration for June options. Traders were eyeing the $5.80 strike in soyabeans as a potential level of volatility given its open interest. But most expected a quiet expiration as prices have consolidated this week, traders said.

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