Soyabean futures at the Chicago Board of Trade ended higher on Wednesday on a late recovery tied to a forecast for hotter rather than cooler weather next week in the Midwest, traders said. Commercial buying of 700 to 800 August by Bunge also aided the advances in soya as did late purchases of November by FIMAT Futures, CIS and Refco.
CBOT soya closed 5 cents per bushel higher to 5 cents lower. August was up 2 at $6.84-1/2 per bushel. New-crop November was up 3-1/2 at $6.94-1/2.
Volume was estimated by the exchange at 75,740 futures, down from 112,245 on Tuesday, and 42,428 options.
The soyabean market turned up after falling early on Wednesday amid another bout of technical selling and on some rainfall in the Midwest crop region, traders said.
"I think it was down mainly because over the next 48 hours there's expected to be some much-needed rain in Wisconsin and northern Illinois. Beans still have the ability to put on some yield at this point," said Dale Gustafson, analyst for Citigroup.
Dry weather in key growing areas of the Midwest has recently been boosting soyabean futures prices and rainfall now should boost soya production prospects, the traders said.
Volatile dealings were expected to continue with spot August soya on Wednesday shifting in a nearly 20 cents per bushel range.
Hotter weather is expected by the weekend in the US Midwest crop region and occasional showers are likely from Wednesday through the end of next week, a private forecaster said on Wednesday.
"It isn't ideal for crops but there will be a few showers mixed with the heat so it could have been worse," said Meteorlogix forecaster Joel Burgio. "There is quite a mixture of weather for the next 7 to 10 days."
Meteorlogix's six- to 10-day outlook for the Midwest from Monday through Friday is for normal to above-normal temperatures and normal to below-normal rainfall.
Exports were quiet overnight and cash basis bids for soyabeans in the Midwest late on Tuesday were steady to weak amid a slowdown in farmer selling.
Soyameal futures closed $2.90 per ton higher to 80 cents lower. August was up $2.90 at $217.00 per ton.
Soyameal volume was estimated at 33,296 futures and 3,568 options.
The late gains in soya helped buoy soyameal futures to a firm close, traders said.
Soyaoil futures closed 0.35 cent per lb higher to 0.03 lower. August was up 0.27 at 24.73 cents per lb.
Soyaoil volume was estimated at 28,502 futures and 2,987 options.
The late rally in soya also aided the advances in soyaoil, traders said, as did commercial buying. Bunge bought 1,000 December, pit sources said.
Malaysian palm oil futures closed weak overnight. Traders in Kuala Lumpur said palm sagged on overall bearish fundamentals.
Exports overnight Tuesday included news that Iran had purchased 35,000 tonnes of Brazilian soyaoil.
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