Chicago Board of Trade soyabeans began recovering from their earlier sell-off on Friday, with the January contract bouncing back over $10 per bushel as the CBOT nearby wheat contracts rallied more than 25 cents per bushel.
January soya was down 4 cents at $10.00-1/4 by 11:40 am CDT, after sliding to $9.93-3/4. Earlier, futures at the Chicago Board of Trade were called to open steady to 2 cents per bushel lower Friday on profit-taking after rallying to a three-year top Thursday, traders said.
The soya market was technically overbought with the nine-day relative strength index for November soya closing Thursday at 88, far above the 70 level viewed as indicating overbought conditions. Also a little bearish was an acreage estimate by Informa Economics for a 4.8 million-acre boost in US soya plantings next year.
But the expected strength in the grains and good demand for US commodities could buoy the soya market. The weakness in the dollar and worries about smaller global supplies was triggering importers to book supplies.
Signs of good demand filtered through the market all week. China said on Friday that it would reduce soyabean import duties to 1 percent from 3 percent for three months beginning October 1 to curb inflation. The move was expected and factored in to the market on Thursday.
USDA confirmed the sale of 130,000 tonnes of 2007/08 US soyabeans to Spain. Overnight strength in Malaysian palm oil futures was supportive to nearbys. But the back months were expected to follow the weakness in soyabeans.
The overnight CBOT trend for soyabeans was down 6-1/2 cents to up 2 cents per bushel, soyameal was steady to down $1.30 per ton and soyaoil was up 0.05 cent to down 0.29 cent per lb.