Soyabean futures at the Chicago Board of Trade soared Tuesday on the back of the soyaoil market that climbed to a 23-year high - mimicking the strength of the Asian oils markets, traders said.
The CBOT soyaoil market notched contract highs overnight and again Tuesday morning, following the Malaysian palm oil market which rose nearly 4 percent overnight on expectations that Indonesia will raise cooking oil export tax and the prospect of India cutting its vegetable oil import duty for the third time this year.
"Palm oil set the tone early. It spilled over to beans and triggered technical buying," one CBOT trader said. July soyabeans were up 11 cents at $8.26-3/4 per bushel by 11:25 am CDT (1625 GMT). The back months 10-1/2 to 13-1/4 higher - after making contract highs across the board. July soyaoil was 0.57 cent per lb firmer at 36.32 cents per lb, with the deferreds up 0.35 to 0.57 cent higher.
Soyameal followed the soyabeans and soyaoil, up 50 cents to $2.60 per ton. July meal was $3.20 firmer at $223.60. Overhanging the market was technically overbought conditions, strong weekly crop ratings, generally favourable weather for young soyabean plants and weakness in cash markets, traders said. Midwest spot basis bids remained weak on Tuesday but were firmer at river locations, cash dealers said.
USDA rated 71 percent of the US soya crop as good to excellent in its first condition ratings of the crop year. Planting was ahead with 88 percent of the crop seeded, versus the five-year average of 81 percent by early June.