Soyabean futures at the Chicago Board of Trade closed higher on Monday on continued speculative buying from commodity funds amid weather worries, strength in the edible oil markets and higher crude oil prices, traders said.
Firmer edible and crude oil markets added support to soyabean oil, which also climbed. "The eastern half of the belt is a crop that is being hit right now by the lack of rain.
Development is still pretty questionable," said James Barnett, analyst with Man Global Research. That dryness had stressed the US soyabean crop over the past week, which was reflected in the government's crop ratings that were released on Monday afternoon.
The US Agriculture Department reported that 65 percent of the US soyabean crop was good to excellent, down 5 points from the week before. Big drops came in Indiana and Illinois down 13 to 15 points, respectively, in the good to excellent categories. Ratings were much lower than expected as traders estimated that conditions would drop 1-2 points.
That was viewed as supportive for overnight trade. July soyabeans closed 8 cents up at $8.55-1/4 per bushel. The defenders were up 4 to 10-3/4 cents. July soyaoil ended 0.21 cent per lb. higher at 36.09 cents, with the back months up 0.21 to 0.30 cent. Soyameal followed the other legs of the complex, settling $2 to $3.50 per ton higher. July meal was $2.40 higher at $237.80.
Volume was heavy with spreading adding to the tally. In soyabeans, an estimated 151,560 futures and 33,188 options traded. Soyaoil trade was pegged at 42,010 futures and 905 options. Estimated soyameal volume was 42,507 futures and 4,145 options.
Commodity funds bought 2,000-3,000 soyabean contracts, 2,000 soyameal and 2,000 soyaoil. Prospects for fewer US soyabean acres in the years to come, as farmers plant more corn remains a supportive feature. However, the strength in the Brazilian real is not improving the prospects for Brazilian farmers to pick up the difference and plant more soyabeans next season, traders said.
The Chicago soya complex has been tracking the moves in the Malaysian palm oil market, which has been volatile, rising to a nine-year high recently given strong demand globally for edible oils for food and fuel.
Last night, palm oil closed 2.2 percent higher on Indonesia's decision to raise export taxes on palm oil and its products, Asian traders said. Weekly export inspections were disappointing. USDA reported that 4.946 million bushels of soyabeans were inspected for export last week, compared with trade estimates for 8 million to 11 million. Midwest basis bids for soyabeans remained weak late on Monday as the strength in CBOT futures is sparking farmer sales and demand is weak, cash dealers said.