Soyabean futures at the Chicago Board of Trade rose on Friday, rebounding from Thursday's sell-off, amid uncertainty about how much rain will reach the eastern US Midwest this weekend, traders said. "Everyone is trying to second guess how much rain we're going to get," said one floor broker. Beans were also supported by technical strength in the soyameal pit, traders said. Buy stops were hit in soyabeans when soyameal rallied, pushing the July soya contract up more than 10 cents per bushel.
The market closed 2-1/4 to 7-1/2 cents per bushel, with the biggest jump in the new-crop months.
July soyabeans closed 6-3/4 cents higher at $6.75-1/4 per bushel, while new-crop November was up 7-1/2 at $6.80. But the current rate of sales looks on course to meet or exceed USDA's current 2004/05-export projection, analysts said. The government said on Friday last week's soya export sales reached 208,500 tonnes (old and new crop), just over trade estimates for 75,000 to 200,000.
China was among the top buyers, buying and shipping 24,700 tonnes. Traders in Shanghai said on Friday a 10 percent rise in Chinese soyabean imports in the first five months of this year has outpaced feed demand, boosting stocks and prompting some buyers to delay deliveries.
Midwest cash soyabean basis bids on Friday were steady to firm amid slow farmer selling. The South American soyabean contract closed 4 to 5-1/2 cents higher, with July up 5-1/2 at $6.71 per bushel, more than a 4-cent discount to the US contract.
The soyameal market hovered near 11-month highs amid another surge of technical buying by commodity funds. July closed $4.30 per ton higher at $215.20, while the back months were up $2.70 to $4.40.
The strength in US meal prices this week and softer Brazilian and Argentine values raised the possibility of US buyers importing South American meal, traders said. Soyaoil futures followed the strength in soyabean and meal, but eased off their highs near the close.
July was up 0.02 at 22.95 cents per lb., with deferred up 0.06 to 0.16 cent. The weekly export sales tally was viewed market neutral for soyameal and neutral to slightly bearish for soyaoil. USDA said 54,700 tonnes of US soyameal (old and new crop) were sold for export last week, within trade estimates for 40,000 to 80,000 tonnes.
US soyaoil export sales totalled 2,500 tonnes (old and new crop) last week, compared with estimates for 2,000 to 6,000 tonnes. Malaysian palm oil futures closed mostly firm. Traders in Kuala Lumpur said palm trading was slow as players waited for a fresh lead.
Soyabean volume was moderate estimated at 63,235 futures and 24,490 options. Estimated soyameal trade was 33,069 futures and 2,552 options. In soyaoil, an estimated 30,925 futures and 4,422 options.
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