Chicago Board of Trade soyabean futures closed higher on Thursday, rallying from early declines on short-covering and prospects for China to step up purchases of US supplies as the US-China Phase 1 trade deal goes into effect in days, analysts said.
CBOT March soyabean futures settled up 3-3/4 cents at $8.96-1/4 per bushel, the contract's ninth consecutive higher close.
CBOT March soyameal ended up 20 cents at $291.90 per short ton while March soyaoil fell 0.31 cent at 30.72 cents per pound.
Commodity funds hold a net short position in CBOT soyabean futures, leaving the market vulnerable to short-covering rallies.
The US Department of Agriculture reported export sales of US soyabeans in the week ended Feb. 6 at 651,100 tonnes (old and new crop years combined), at the low end of a range of trade expectations.
Rallies capped by expectations of large South American soya harvests. Brazilian firm Agroconsult raised its forecast of Brazil's 2019-20 soyabean crop to 126.3 million tonnes, from 124.3 million previously.
Argentina's Rosario grains exchange on Wednesday raised its forecast of the country's soyabean crop to 55 million tonnes, from 54 million previously.
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