Chicago Board of Trade soyabean futures closed higher on Friday after reaching contract highs across the board, supported by strong weekly export sales and a weaker dollar that may spur additional business, traders said.
But trade was on the lighter side in a shortened session after the US Thanksgiving holiday, making prices more vulnerable to magnified moves, traders said.
The markets closed at noon CST after being closed on Thursday for the holiday, reopening for the night session. January soyabeans ended 10-1/4 cents higher at $6.84-1/4 per bushel, after making a new contract top of $6.87-1/4. The back months closed 7 to 10 cents higher.
The rally began in the wheat pit and moved over to soyabeans as the climb in wheat spurred speculative buying of soya by local traders, floor brokers said. "It's technically strong and I think we have strong demand," said Don Rose, analyst with US Commodities in West Des Moines, Iowa.
The weekly export sales figure was supportive. The US Agriculture Department on Friday reported 801,900 tonnes of soyabeans were sold for export last week, above trade estimates for 500,000 to 700,000 tonnes.
Traders were also hearing of fresh export interest in soya by China this week. The dollar sank for its fourth consecutive session on Friday amid weak US economic data.
A falling dollar is typically supportive for CBOT grain and soya markets, making US commodities more attractively priced to world grain and soya buyers. Spot basis bids in the US Midwest were steady on Friday, with some sales reported in the eastern belt as farmers were rushing to get the last of this crops harvested.
Wet weather in Michigan, Ohio and Indiana this fall has put harvest behind there. The products closed mostly firm with soyameal gaining on soyaoil a switch from this week's moves when soyaoil reached contract highs. December soyameal ended $2.70 per ton higher at $194.80, with the deferreds up $3.10 to $5.70. December soyaoil was 0.02 cent per lb higher at 28.89 cents.
The backs were mostly higher up 0.10 to down 0.01 cent. Commodity funds bought 3,000 soyabean futures, 2,000 soyameal and 1,000 soyaoil, traders said. The weekly export data was supportive for soyabean meal and disappointing for soyaoil. But strong Malaysia palm oil prices overnight amid outlooks for palm oil demand to grow faster than the supply underpinned Chicago soyaoil prices, traders said.
Malaysian palm oil futures closed higher, with the February contract up 40 ringgit. USDA on Friday said 248,600 tonnes of soyameal were sold for export last week, compared to estimates for 75,000 to 125,000 tonnes. US soyaoil exports last week were 300 tonnes, USDA said. That was below estimates for soyaoil exports to be 5,000 to 10,000 tonnes.