US soybean futures on the Chicago Board of Trade rallied above $10 a bushel in the nearby contract for the first time in three months as the market is technically strong, traders said. Commodity funds were actively buying soybeans and soyoil as fresh money flowed into those markets with the start of the New Year.
Funds bought 5,000 soybean contracts, 4,000 soyoil and 1,000 soymeal traders. Soy market remains supported by Chinese demand for US soy, dry crop weather in South American and recent rise in crude oil. January soybeans closed 30-1/2 cents higher or 3 percent up at $10.14-1/4 a bushel; March soy ended 29 up at $10.16.
Strongest leg of the complex was soyoil, closing 6 percent higher. January soyoil rose to two-month high, ending 2.15 cent per lb higher at 37.05 cents. January soymeal ended $1.60 per ton higher at $300.30. Crude oil rallied early on Russia's fuel dispute with Ukraine, Middle East tensions and Opec's supply cut, then ended near unchanged.
Concerns continue about dryness in central Argentina and southern Brazil but both areas could see timely rains in the next week to 10 days DTN Meteorlogix forecaster. Exporters sold 232,000 tonnes US soybeans to China USDA. China's government reserve is selling soyoil into a rising domestic market ahead of the holiday and is expected to refill its reserves with import trade.
CBOT to limit ag receipts held by non-grain firms. Large speculators increase net long position in CBOT soy CFTC. Overnight, there were 178 January soybean deliveries met by scattered stoppers. January soyoil deliveries were moderate to large at 892 contracts, but met by strong commercial stoppers. A Century Group customer took 419 lots and Man customer stopped 334. There were no January soymeal deliveries.
Large speculators expanded their net long positions in soybeans and soymeal while cutting their net short soyoil position in the week ended December 30 -Commodity Futures Trading Commission. Malaysian palm oil futures closed higher at a 3-month high and up nearly 8 percent.