Soybean futures on the Chicago Board of Trade soared early on Wednesday as firms covered short positions amid extended forecasts for drier weather in the eastern US Midwest, which has received limited rains this season, traders said.
July soyabeans were up 16 cents per bushel at $8.45 by 10:35 am CDT (1535 GMT). The deferred months were up 13 to 16 cents. July was trading above all key moving averages, with nearby support at its 20-day moving average of $8.20. Commodity funds were featured buyers, traders said.
Wednesday's move was just the opposite of Tuesday, when prices plummeted after heavier-than-expected rains moved through Illinois overnight and forecasts turned wetter for this week. Crops in the eastern Corn Belt were stressed from limited topsoil moisture.
Long-term outlooks were also supportive for soyabeans as US farmers are projected to plant fewer soyabeans and more corn. Additionally, the strength in the Brazilian real was deterring South American farmers from picking up the difference. The soya products followed soyabeans higher. The soyameal market was $3.20 to $7.30 per ton higher, with July up $4.70 at $234.40. July soyaoil was 0.17 cent higher at 35.49 cents per lb, with the deferreds up 0.11 to 0.20 cent.