Soyabean futures at the Chicago Board of Trade closed higher on Wednesday, gaining on corn as the soya/corn price ratio adjusted, traders said. May soyabeans ended 4 cents higher at $7.46-1/2 per bushel and new-crop November closed 4-1/4 up at $7.91-3/4.
New-crop December corn closed 6-3/4 down at $3.87-3/4 per bushel. The November soya/December corn price ratio widened to 2.04:1 On Wednesday's close, from 1.99:1 the day before>6pBoth levels were significantly below the 2.22:1 ratio of about a week ago. A soya/corn ratio of 2.15 to 2.2 is enough to boost corn plantings over soyabeans, traders said.
The ratio narrowed this week when corn rallied and soyabeans dived on prospects that US farmers could plant more Soya' than planned due to the slow start of corn seeding>6pCold, wet weather was hindering corn planting, generally done before soyabeans in the Midwest. But the ratio was out of whack after the rally in corn on Tuesday>6pAdditionally, there were forecasts for drier weather in the north-west Midwest next week, which would improve planting prospects for corn, traders said.
The products ended firm with soyabean oil gaining on soyameal a repeat of Tuesday's trend as firms were spreading oil/meal amid the strength in the energy markets on government data that showed US gasoline supplies fell. The strength in soyabeans and Malaysian palm oil futures was also supportive to soyaoil. Tight supplies and strong exports of palm boosted Malaysian palm oil to eight-year highs overnight.
May soyabean oil closed 0.32 cent per lb higher at 32.78, with the back months up 0.25 to 0.50 cent. CBOT soyameal spent most of the day lower but ended firm, hitting its highs late pulled up by the strength in soyabeans and oil>6pMay end 30 cents per ton higher at $205.10, with the back months up 20 cents to $1.90. There was bearish talk of possible South American soyameal imports. But much of the day's weakness in meal was linked to oil/meal spreading amid the rise in the energy markets, traders said.
Volume was heavy. Soyabean trade was estimated at 134,321 futures and 25,410 options. Estimated soyaoil trade was 53,855 futures and 4,794 options. Soyameal volume was seen at 35,920 futures and 3,413 options. Commodity funds bought 4,000 soyabean contracts, 2,000 soyaoil and sold 2,000 soyameal. Rolling of May positions remained active and helped boost volume, traders said.