Soyabeans up on short-covering

Soyabean futures on the Chicago Board of Trade climbed on Wednesday as firms covered short positions amid extended forecasts for drier weather in the eastern US Midwest, which has received limited rains this season, traders said.
Long-term outlooks for soyabeans were also supportive as US farmers are projected to plant less soyabeans and more corn. Additionally, the strength in the Brazilian real was deterring South American farmers from picking up the difference.
"Beans have been the laggard to corn for so long that you've lost bean acres. There's a real concern that your acreage numbers on June 29 could be down more up more in corn.
The beans are reacting to that," Roy Huckabay, analyst with The Line Group in Chicago, said, referring to the US Agriculture Department's June 29 acreage report. July soyabeans closed 10 cents per bushel higher at $8.39 per bushel. The deferred months ended 5 to 13-3/4 cents firmer. July is trading above all key moving averages, with nearby support at its 20-day moving average of $8.20.
On Wednesday's move was just the opposite of Tuesday, when prices plummeted after heavier-than-expected rains moved through Illinois overnight and forecasts turned wetter for this week.
Crops in the eastern Corn Belt were stressed from limited topsoil moisture. Soyameal followed soyabeans higher, but the weakness in the crude oil market, commercial selling and a lower close in Malaysian palm oil overnight pressured soyaoil. The soyameal market closed $3.20 to $6 per ton higher, with July up $3.50 at $233.20.
July soyaoil ended 0.01 cent lower at 35.31 cents per lb., with the deferred down 0.08 to up 0.02 cent. Commodity funds bought 5,000 soyabean futures, 2,000 soyameal and 500 soyaoil, traders said. Commercials net sold roughly 2,000 oil contracts, with processor Bungle selling 3,000 December. Commercial firms were also selling soyameal, including Bungle, which sold 1,500 December. Featured soyabean spreaders were ADM with 2,200 July-November and J.P. Morgan spreading 1,100 July-November.
Spot basis bids for soyabeans in the US Midwest were weak on Wednesday amid limited demand, cash dealers said. Farmer sales were quiet after on Tuesday's plunge in futures prices. In export news, Egypt cancelled a tender for 30,000 tonnes of soyabeans, saying prices were too high.