US soyabeans climbed to their highest level in nearly a month on Wednesday on a mix of technical strength and robust demand from exporters as well as domestic processors, traders said. Corn followed soyabeans higher and drew further support from bullish weekly US ethanol data, and wheat snapped out of a four-session slide.
At the Chicago Board of Trade, soyabeans for January delivery settled up 23-3/4 cents, or 1.6 percent, at $14.79-1/4 per bushel after reaching $14.79-3/4, the contract's highest level since November 9. CBOT March corn ended up 5-3/4 cents, 0.8 percent, at $7.57-3/4 a bushel, and March wheat rose 3-1/2 cents, 0.4 percent, to end at $8.60 a bushel.
CBOT January soyabeans made a solid break above their 200-day moving average at $14.64 and settled above that line for the first time in nearly a month. Wednesday's soya market strength followed a late-session rally on Tuesday as rumours swirled of renewed Chinese demand for US soyabeans, sourced from exporters in the Pacific Northwest.
"There has been talk that China has bought maybe up to six cargoes this week," said Ken Smithmier, grains analyst at the Hightower Report in Chicago. Exporters have been competing for soyabeans on the cash market with domestic processors, which are currently reaping high profit margins from crushing raw soyabeans into soyameal, a key source of protein in animal feed, and soyaoil, used in foods and soya-based biodiesel fuel.
"I think there is a very strong US crush pace, with the big domestic crush margins," said Dan Cekander, analyst at Newedge USA in Chicago. Traders also noted continued rains in saturated areas of Argentina's crop belt that have stalled corn and soyabean planting and could threaten yield prospects. The Commodity Weather Group on Wednesday forecast more rains for next week as well as the 11- to 15-day period.
In neighbouring Paraguay, the No 4 global soya supplier, the country's Senate approved a bill on Tuesday that would impose a 10 percent tax on soyabean exports. Soyabeans drew background support after Statistics Canada reported Canadian production of canola, a competing oilseed, at 13.3 million tonnes, below an average of trade estimates for 13.7 million.