US soybean futures on the Chicago Board of Trade climbed on Tuesday on optimism that financial and commodity markets may stabilise with the election of a new US president, traders said. Weaker dollar fuelled the broad-based rally in commodities as a cheaper dollar makes US commodities more attractive to overseas buyers. November soybeans ended 21-1/4 cents higher at $9.49-1/2 a bushel.
December soyoil closed up 1.23 cent at 35.97 cents per lb; December soymeal settled up $2.60 per ton at $277.80. Commodity funds bought 3,000 soybean contracts, 1,000 soymeal and 2,000 soyoil.
Global markets were stronger overnight and the Dow industrials rose Tuesday on hopes that recent interest rate cuts will ease the economic slowdown, with Australia making the latest cut. Steady Chinese demand for US soybeans remains a supportive feature. There was talk that China was shopping for more US soybeans -trade. USDA said late Monday that the US soy harvest was 86 percent complete, just behind the five-year pace of 89 percent and trade estimates.
Midwest weather remains open for harvest until Wednesday when rains move in - forecaster. Brokerage FC Stone projected 2008 US soybean crop at 2.916 billion bushels and yield of 39.2 bushels per acre. Consulting firm Informa Economics on Tuesday forecast the 2008 US corn crop at 2.987 billion bushels with an average yield of 40.2 bpa -traders.
Analysts' estimates compare to USDA soy crop estimate of 2.938 billion bushels, reflecting a yield of 39.5 bpa. USDA to issue next crop report on November 10. Deliveries on November futures totalled 129 contracts; biggest stopper was Tenco customer account, taking 99 lots.
Low global soy prices may soon stimulate more industry buying, which could help lift prices -Oil World. World soy market seen more dependent on South American supplies in coming months, following a lower-than-expected US soybean crop - Oil World.