Soyabean futures at the Chicago Board of Trade were sharply higher early on Tuesday, lifted by concerns about the US soyabean crop amid forecasts for warm, dry weather in August, traders said. The market gained momentum when buy stops were hit near $6.94 per bushel in November.
New-crop November soya was up 8 cents at $6.95-1/2 - rising 10 cents to $6.97-1/2 by 10:30 am CDT (1530 GMT). Front-month August was 9-1/2 higher at $6.82-1/2. Refco and Cargill Investor Services were early buyers of November.
The market opened higher on disappointing weekly crop ratings. The US Department of Agriculture late Monday said it rated 54 percent of the US soya crop as good to excellent, unchanged from the previous week. Traders had expected the crop to improve by 2 to 4 percentage points after rains in the Midwest last week.
The August/November spread was firm, despite heavy deliveries posted against the August contract on Tuesday.
There were 759 soya deliveries scattered among firms, with a Refco customer posting 174. The biggest stopper was a customer of R.J. O'Brien at 632 lots. The Bunge Chicago Inc house account stopped 92. Registrations with the CBOT late Wednesday increased to 1,716 lots from 1,279.
The soyameal and soyaoil markets followed soyabeans higher. August soyameal was up $2.60 per ton at $215. The lack of deliveries since the start of the August delivery period last Friday remained supportive. But US cash soyameal markets had a softer tone.Soyaoil trade was choppy as the market tried to recover from its recent technical sell-off, but deliveries against the August contract weighed. August soyaoil was 0.10 cent higher at 24.18 cents per lb.
There were 261 deliveries against the August soyaoil contract on Tuesday, with a Fimat USA customer issuing 127 and a Tenco customer stopping 141. Registrations with the CBOT were unchanged at 2,480 lots.
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