US soyabean futures on the Chicago Board of Trade closed higher Wednesday for a second day, following the corn market which soared on talk of China seeking US supplies, traders said. Buying accelerated as buy-stops were hit. May soyabeans hit a one-week high and broke through resistance at the 20- and 50-day moving averages.
May soyabeans ended up 8 cents at $9.52-1/2 per bushel; new-crop November up 9-1/2 at $9.41-1/4. May soyameal ended $2.50 higher at $265.60 a ton. May soyaoil up 0.26 cent at 40.03 cents per lb. Managed funds bought an estimated 3,000 soyabean contracts, 1,000 soyameal and 1,000 soyaoil.
Firm cash markets added support amid a slowdown in soya sales from US and South American farmers who are disappointed with current prices - traders. Brazil government agency Conab trimmed soya crop forecast to 67.4 million tonnes, from previous 67.6 million. Cooler, drier weather to boost late-filling soya and harvest in Brazil; mainly favourable weather continues in Argentina.
Taiwan BSPA-K buys 60,000 tonnes Argentine-Paraguay soyabeans. Spot soyabean basis steady to firm around US Midwest; grain dealers report few farmer sales. US CIF Gulf soya basis steady to weak amid poor demand and ample supplies. China-Argentina soyaoil spat about stocks, crushers.