Chicago Board of Trade soyabean futures climbed Tuesday, led by soyaoil on prospects for increased US demand for soya-based biodiesel fuel, traders said. CBOT May soyabean futures settled up 13-3/4 cents at $10.35-3/4 per bushel. Additional support stemmed from fund-driven buying at the end of the month and ahead of the US planting season.
Soyaoil soared after the head of the Renewable Fuels Association said that US President Donald Trump's administration would lift the responsibility for blending biofuels off refiners. Changes to the US biofuels program could also include support for a tax credit for producers of soya-based biodiesel, a source told Reuters. CBOT soyaoil and corn futures pared gains following a White House statement that no executive order was in the works on ethanol.
Expectations of a large South American soya harvest hung over the market. Brazil's crop is likely to reach a record 105 million tonnes, Hamburg-based oilseeds analysts Oil World forecast. The US Department of Agriculture's monthly report on oilseed crushings will likely show that about 5.080 million short tons, or 169.3 million bushels, of soyabeans were processed in January, a Reuters poll of six analysts showed. The CBOT reported 500 soyabean deliveries against the March futures contract on first notice day, at the high end of trade expectations.