02062016Sat
Last update: Sat, 06 Feb 2016 08pm

Soyabeans up 1.4 percent

US soyabean futures rose 1.4 percent to their highest level since September 19 on strong end user demand, traders said.

Corn futures also climbed, supported by short-covering, but wheat was mostly lower on technical weakness. Soyabeans were buoyed early by a US Agriculture Department report that private exporters sold 290,000 tonnes of US soyabeans to China.

"Beans took off from the get-go off of talk of more Chinese interest in US beans and more announcements of business underlining that the United States is already over-subscribed on soyabean export business," Charlie Sernatinger, an analyst for ED&F Man Capital, said in a research note.

Traders said the market was building in a premium ahead of what is expected to be more bullish news for soyabeans in the coming days.

"The next week-plus is expected to bring strong demand numbers to support that cause, including continued robust exports, an anticipated USDA carryout cut tomorrow, and November NOPA crush a week from today," Matt Zeller, director of marketing information at INTL FCStone, said in a note to clients.

Analysts expect the USDA's monthly supply and demand report, due Tuesday, to estimate 2013/14 US soyabean ending stocks at 153 million bushels, down from the government's earlier estimate of 170 million.

Chicago Board of Trade soyabeans for January delivery settled up 18-1/4 cents at $13.43-3/4 a bushel. Prices peaked at $13.46-3/4 a bushel, their highest since $13.61-1/4 on September 19.

CBOT corn for March delivery rose 4-1/2 cents to $4.28-1/2 a bushel. Some technical buying pushed corn prices through their 30-day moving average. But the market faced resistance at the 40-day moving average, which prices have not surpassed since September 3.

CBOT March soft red winter wheat was down 1/2 cent at $6.50-1/2 a bushel, its fourth straight losing session. The market suffered a technical breakdown after early strength failed to push it through its 20-day moving average.

A cold snap across the US Plains and key growing areas of the soft red winter wheat region limited declines, although much of the crop was considered safe from damage. Sub-freezing temperatures and snow blanketed portions of the US Plains and southern Midwest over the weekend, threatening some winter wheat, analysts said.

Temperatures were cold enough this weekend to have damaged crops across 5 percent of the US Plains hard red winter wheat belt, with west-central Nebraska the hardest hit, MDA Weather Services said on Monday.

Copyright Reuters, 2013