Soyabean futures at the Chicago Board of Trade soared on 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 on Tuesday, 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.
"Even though it's not changing the demand for US soyabean oil ... there's a global price relationship between the veg oils," said Randy Mittelstaedt, analyst with R.J. O'Brien.
US soyabean oil stocks remain plentiful but there are prospects for the growing bodiless industry to help drawdown stocks as it produces more green fuels for soyaoil in the coming year, analysts and traders said.
July soyabeans closed 12-1/2 cents up at $8.28-1/4 per bushel, after making a fresh high of $8.30 the highest spot price in 2-1/2 years. The deferred months ended 9 to 13-1/2 firmer, with nearly all them making contract highs.
July soyaoil ended 0.52 cent per lb. firmer at 36.27, with the defenders up 0.33 to 0.52 cent higher. "We're working our way up to new contract highs everyday in the beans and the oil it keeps the charts looking pretty bullish," said Anne Frock, oilseed analyst with Prudential Financial.
That has attracted a steady flow of speculative money by commodity funds into beans and oil over the last week or more, floor traders said. Soyameal followed soyabeans and soyaoil, closing $1 to $3.20 higher.
July meal ended $3.20 firmer at $223.60. Commodity funds bought 5,000 soyabean contracts, 2,000-3,000 soyaoil and 2,000-3,000 soyameal, traders said. Overhanging the market were strong weekly crop ratings, generally favourable weather for young soyabean plants and weakness in cash markets, traders said.
Midwest spot basis bids were soft on Tuesday but firmed at river locations, cash dealers said. USDA rated 71 percent of the US soya crops 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 June.