Soyabean futures at the Chicago Board of Trade ended firm on Wednesday in choppy consolidation trade ahead of the release on Friday of several important government reports, traders said.
CBOT soya closed 1/2 to 5-1/2 cents per bushel higher, with July up 3/4 at $2.26 per bushel. New-crop November was up 2-1/4 at $6.05-3/4. "I think everyone is just getting ready for Friday," a trader said.
The US Department of Agriculture will release on Friday its June acreage and quarterly stocks reports. An average of analysts' estimates pegged June 1 soya stocks in the United States at a record-high 1.016 billion bushels, sharply above the 699 million bushels on hand a year ago.
Analysts on average forecast US soya acreage for the 2006 harvest at 75.166 million, up from last year's 72.1 million. Firm cash soyabean markets and slow farmer selling supported soya futures but gains were capped by mostly good crop weather in the United States and by record large stocks of soyabeans.
Traders and analysts agreed that crop weather in the US Midwest crop region was generally OK but there was some concern about occasional hotter and drier weather over the next week to 10 days.
"It's good but not ideal, there's something for everyone to make a case for their position," an analyst said. Exports were quiet overnight and Asian trade sources said China is hesitant to book more soya because demand for animal feed is slow to recover and freight costs are high.
Technical traders were watching the July contract continue to trade below all key moving averages and technical support on Wednesday was pegged at $5.72-1/2 per bushel while resistance was seen at $5.80-1/2.
Cash basis bids for soyabeans in the Midwest were steady to higher and farmer selling remains slow. Soyameal ended mixed, ranging from 30 cents per ton higher to $1.50 lower. July was down 40 at $172.70 per ton.
Traders said soyameal followed the choppy dealings in soyabean futures. Soyaoil was unchanged to 0.20 cent per lb higher, with July up 0.13 at 25.27 cents per lb. Firm crude oil markets provided some underlying support for the soyaoil market.
Soyaoil continues to be influenced by the energy sector because of potential increases in demand for soyaoil to fuel the fledgling biodiesel industry. The dollar held firm on Wednesday and New York gold turned weak in choppy dealings.
The US stock market also was choppy but was trading firm when grain futures closed.