US soyabean futures on the Chicago Board of Trade rose the 70-cent trading limit on Wednesday, lifted by the strength in corn and crude oil, traders said. The rally in crude oil, closing $3 per barrel higher and fuelled by larger-than-expected drawdowns in US crude and gasoline stocks over the past week, led to spillover buying in the CBOT soy complex, traders said.
Higher corn prices added support. Corn bounced from a six-month low on Tuesday to close higher - a technical buy signal, traders said. Soybeans remain supported by the government's forecast for 2008/09 US soy ending stocks to fall to 135 million bushels, matching 2007/08 - the lowest since 2003. Surprising many analysts, USDA cut 27 million off its 2008 US soy crop estimate, putting it at 2.973 billion bushels in its August crop report released Tuesday.
Late options trade indicated that September soy was up another 11-1/2 cents and November up 15. Options trading remains open even if futures lock limit. Soymeal ended up the $20 per ton limit in most months along with soyoil, up the 2.5-cent per lb limit.
September meal ended $20 higher at $355.50; September soyoil closed 2.5 cent higher at 52.47 cents. Meal and oil options trade indicated that September contracts were near the limit-up close. Late December meal options trade indicated futures were up $2 at $354.
Expanded price limits go into effect Wednesday. Soybeans to $1.05 from 70 cents; soymeal to $30 from $20 and soyoil to 3.5 cent from 2.5 cent. Commodity funds bought about 6,000 soybean contracts, 3,000 soymeal, and 4,000 soyoil, traders said. There was some positioning before August soybeans, soymeal, soyoil expire on Thursday midday.
National Oilseed Processors Association to issue its July crush figures on Thursday. Analysts expect a July crush near 139.2 million bushels, up from 133.5 million crushed in June.
Midwest weather remains mostly favourable for soybean filling. But there were some concerns about northern and eastern areas drying out. Biggest threat is the potential for an early September freeze, DTN Meteorlogix forecaster said. Midwest basis bids for soybeans weakening amid some processors taking downtime, dealers said. Farmer sales quiet.
Overnight, there were light for August soybean postings of 58 contracts, met by a heavier stopper as a Man customer took 51. Soyoil deliveries were moderate to heavy at 425 contracts. There were two big stoppers, with a Man customer of 214 and a Fortis customer 136. India's July vegoil imports down 3 percent.