Soyabean futures at the Chicago Board of Trade rose on Friday as the market was viewed as technically strong, mimicking the moves in the vegetable oil markets ahead of the long holiday weekend, traders said.
CBOT markets will be closed until on Monday night for the US Memorial Day holiday. Chicago soyabean oil spiked to contract highs, with the spot month notching a near 23-year high as it continues to take its cue from the roaring Malaysian palm oil market.
Palm oil futures closed 2.2 percent higher overnight after hitting a nine-year high on firm exports and outlooks for stocks to drop to meet food and fuel demand, traders said. There's rumblings of large purchases of edible oils globally this week by Asian countries, in particular China, to meet its growing food demands. "China is very active in the markets in oils and oilseeds.
The oil basis is up about 70 points in South America today," one industry source said. July soyabeans closed 7-1/4 cents higher at $8.12-1/2 per bushel. The back months ended 4-1/2 to 7-3/4 cents higher. July soyabean oil closed 0.26 cent higher at 35.84 cents per lb., after notching a contract high of 36.05 cents.
Soyameal followed along, up 50 cents to $2.60, with July up $1 at $218.20 per ton. Volume was moderate. In soyabeans, an estimated 93,308 futures and 39,921 options traded.
Soyaoil trade was pegged at 35,738 futures and 11,168 options. Estimated soyameal volume was 41,727 futures and 814 options. Commodity funds bought 4,000 soyabean futures, 2,000 soyameal and 2,000 soyaoil. Commercials were buyers of soyaoil for the second straight day, net buying 1,000 lots.
The CBOT rally has also sparked farmers to move old-crop supply this week, weakening Midwest spot basis bids, cash dealers said. June options went off the board quietly as the open interest was limited going into the session, option traders said.