Soyabean futures at the Chicago Board of Trade closed up sharply on Wednesday amid climbing crude oil markets and a race to new contract highs in soyaoil, traders said. CBOT soyabeans closed 13 to 15 cents per bushel higher, with May up 13-3/4 at $7.70-3/4 per bushel.
Traders also said that soya was climbing amid outlooks for a sharp cut in US soya acreage this year as Midwest farmers gear up to plant the most corn in 60 years. Malaysian palm, CBOT soyaoil and crude oil were up sharply overnight in volatile dealings as tension mounted between Britain, Iran and the United States, and crude held strong on Wednesday in volatile trade.
Traders also said positioning occurred ahead of the release on Friday of USA's March plantings and quarterly stock reports. USDA on Friday will release its March plantings and quarterly stock reports. An average of analysts' estimates pegged 2007 US soyabean acreage at 69.179 million, below last year's 75.522 million and US soya stocks on March 1 at 1.797 billion bushels, above the March 1 a year ago of 1.669 billion.
DTN Meteorlogix weather on Wednesday said rains in the US Midwest were recharging soil moisture reserves, boosting prospects for the soon-to-be-seeded crops. Weather was favourable for crops in Brazil, and there were some concerns about flooding in Argentina. Soyameal was up 90 cents to $4.10 per ton, with May up $4.10 at $218.30 per ton.
Soyaoil was up 0.48 to 0.72 cent per lb, with May up 0.60 at 32.41 cents per lb. Malaysian palm oil futures rallied 2.2 percent overnight to three-month high and CBOT soyaoil jumped 1 percent.