Chicago Board of Trade (CBOT) soyabeans closed higher on Wednesday in a technical-buying rebound from the previous day's declines as the market awaited details of a government farm aid package that could encourage farmers to plant more soya.
CBOT July soyabeans settled up 6-1/2 cents at $8.28-1/2 per bushel after bouncing off of the prior day's low of $8.19. The contract hit chart resistance at its 20-day moving average. CBOT July soyameal ended $3.00 higher at $298.30 per short ton while July soyaoil gained 0.17 cent to 27.31 cents per pound. A media report on Tuesday said the White House is considering payments of $2 per bushel for soyabeans as part of a $20-billion aid package to offset farmers' losses from the trade war with China. The aid had been seen encouraging more soya planting at a time when supplies are already record-large.
The US Department of Agriculture (USDA) later on Tuesday said details on the aid package would be forthcoming and urged farmers not to base planting decisions "based on inaccurate media stories." The USDA on Wednesday confirmed private sales of 131,000 tonnes of US soyabeans to undisclosed buyers.
Rainy weather is still threatening Midwest corn and soyabean planting. Poor field conditions may trigger a shift from corn acres to soyabeans, which can be planted later in the spring. The lack of progress in US-China trade talks also hung over the soyabean market. No talks between top Chinese and US negotiators have been scheduled since the end of two days of discussions in Washington on May 10.