US soyabean futures rose early on Tuesday on dwindling old-crop stocks and continued strength in the cash market as domestic processors scrambled for supplies, traders said. Corn pared gains on profit-taking after the July contract rose to fill a longstanding gap in its chart.
Wheat firmed on short-covering and bargain buying, but rising world supplies and the start of harvesting in the Northern Hemisphere kept a lid on gains. At the Chicago Board of Trade at 11:05 am CDT (1605 GMT), July soyabeans were up 8-1/2 cents at $15.21 per bushel. The contract extended its premium over new-crop November soyabeans, which rose 4 cents to $12.89-1/2.
Some soya processors in Iowa raised their cash bids for soyabeans by 15 to 20 cents per bushel on Tuesday. The moves came a day after the National Oilseed Processors Association reported the US soyabean crush for May at 122.6 million bushels, up from 120.1 million bushels in April, underscoring strong soyabean usage despite scarce supplies.
"The balance sheet has been tight and it continues to bring support to this old-crop market," said Mike North, senior risk management adviser at First Capitol Ag in Platteville, Wisconsin. Gains in deferred soya contracts were capped by mostly favourable growing weather in the US Midwest and expectations that farmers would be able to plant the last of their soyabeans.
The crop was 85 percent seeded by Sunday, the US Department of Agriculture said in a weekly report, behind the five-year average of 91 percent. CBOT corn firmed in early moves and the spot July contract climbed to $6.77-1/4 per bushel, filling a gap in its chart dating to March 28. On that day, corn prices crashed after the USDA reported higher-than-expected US quarterly stocks. Traders seized the moment to take profits. By 11:10 am (1610 GMT), July corn had retreated to $6.69-1/2, up 1 cent on the day.