Soya hits 5-1/2 month high

US soyabean futures climbed for a second consecutive session on Wednesday and hit a 5-1/2 month high as a drought-reduced South American crop and port congestion was expected to bolster demand for thinning US supplies this summer. Fund buying and chart-based buying above recent highs added support at times, along with supportive US soyabean crushing data released on Wednesday.
Corn and wheat were mostly lower, bucking support from rising soyabeans, amid a firmer US dollar, which increases costs for those buying dollar-denominated grains with other currencies. Profit-taking in corn following three days of gains also pressured the grain.
"The beans are leading the charge and there's more talk that China is interested in getting some summer (US) shipments," said Jack Scoville, analyst with The Price Group. "The ports in South America look like they're going to be full right through next month so we might continue to see business come here (to the United States) and see this price support," he added. Soyabeans remained underpinned by tightening supplies of the oilseed following a drought in key producing countries in South America.
Better-than-expected demand from US soya processors last month also added support as NOPA pegged the February crush at 136.350 million bushels, below 142.813 million in January but above an average of analysts' estimates for 134.5 million bushels. The actively traded May soyabean contract on the Chicago Board of Trade added 1-1/2 cents, or 0.1 percent, to settle at $13.50-1/4 a bushel after earlier climbing to $13.60-3/4, a level last seen on September 21. New-crop November was 1/2 cent lower at $13.11. The March futures contract expired on Wednesday at $13.56, up 7-1/4 cents. Investment funds bought a net 3,000 soyabean contracts on the day while selling 6,000 corn and 2,000 wheat contracts, trade sources said.
CBOT May corn slipped 3-1/4 cents, or 0.5 percent, to $6.58-3/4 a bushel while new-crop December fell 3-1/2 cents, or 0.6 percent to $5.64. The March contract expired at $6.69-1.2 a bushel, down 4-1/2 cents. CBOT May wheat shed 5-1/4 cents, or 0.8 percent, to $6.43-3/4. March wheat expired at $6.51-3/4, up 1/4 cent.