US soyabeans extend rally

Soyabean futures on the Chicago Board of Trade rose for a sixth straight session on Monday, climbing 1.7 percent as forecasts for hot, dry weather stoked fears about crop prospects in Argentina, the world's No 3 soya exporter, traders said. CBOT January soyabeans settled up 23-1/2 cents at $13.73 per bushel, after reaching $13.78-1/4, highest spot soya price in 27-1/2 months.
January soyameal ended up $6.40 at $366.40 per ton. January soyaoil up 0.56 cent at 57.15 cents per lb, after reaching 58.05 cents, highest spot soyaoil price since August 1, 2008. Contract highs set in soyabeans, soyameal and soyaoil. CBOT soyabean futures volume estimated Monday near 147,000 contracts, about 20 percent below the 30-day average on a day when most markets were 75 percent below the past month's average volume. Funds bought a net 5,000 soyabean contracts, 2,000 soyameal and 2,000 soyaoil, floor traders said.
After the close, weekly data from the US CFTC showed large speculators widened their net long in CBOT soyabeans to 147,637 contracts in the week ended December 21, a six-week high, an increase of 11,439 contracts from the previous week. Rain and cooler temperatures during the weekend eased stress to developing soyabeans in major crop-growing areas of central Argentina. But significant stress expected this week due to warm temperatures. La Nina dryness batters Argentina's soya belt in latest week - government.
USDA reported export inspections of US soyabeans in the latest week at 23.331 million bushels, below trade estimates for 35 million to 40 million. However, USDA also revised the previous week's figure to 52.378 million bushels, up from 44.602 million. China December soya imports revised downward to 5.4 million tonnes from 5.8 million tonnes, according to Commerce Ministry. China to release 300,000 tonnes of soya from reserves on Tuesday even though previous sale attracted no bidders, said National Grain & Oil Trade Center. Cash soyabean basis mostly steady in US Midwest interior following a pickup in farmer selling late last week as the futures rally lifted cash prices. Malaysian palm futures hit 33-month high on tight supply, China demand hope.