Soybean futures at the Chicago Board of Trade were called to open 1/2 to 1 cent per bushel higher Tuesday in a mild technical bounce, with the market oversold and prices hovering at 8-1/2-month lows, traders said.
The nine-day relative strength index for November soyabeans closed at 24 on Monday, within the 0-30 range viewed as indicating an oversold market. But traders did not expect prices to move much from their current range, consolidating after a summer of volatility.
There was less concern about the US soyabean crop as the weather has turned milder since early August, improving yield potential. Most traders expect the US Agriculture Department to raise its US soya crop estimate in its September 12 report.
Crop weather looked mild for the next week, with mild temperatures mostly in the 80s (Fahrenheit) and widespread showers by Friday and Saturday, said Meteorlogix weather service. The government said late Monday 58 percent of the US soyabean crop was in good to excellent condition, 2 percentage points higher than the week before. Traders expected conditions to improve 1-3 points.
Scouts on the annual John Deere Pro Farmer Midwest croup tour said overnight that corn and soya crops in Ohio were on track to produce above average yields but drought has cut yield prospects in South Dakota. One leg of the tour moves through Indiana on Tuesday and the western leg will be surveying fields in Nebraska.
In exports, Taiwan bought 12,000 tonnes of US soya. Spot basis bids for soyabeans in the Midwest early Tuesday were steady to firm, underpinned by a lack of farmer sales.
The soya products were expected to open steady to firm, taking their cue from soyabeans. CBOT soyameal was called to open steady to 20 cents per ton higher and soyaoil steady to up 0.05 cent per lb. The soyaoil market could see some spillover technical pressure from weakness in Malaysian palm oil futures overnight. The overnight e-cbot trend for soyabeans was 1/2 cent per bushel higher to 1/2 lower, soyameal was unchanged to 20 cents per ton lower and soyaoil was 0.08 to 0.13 cent per lb. higher.