Soya rallies

US Soyabean futures jumped more than 1 percent on Tuesday and closed at their highest in 5-1/2 months on renewed worries of tighter supplies in the wake of drought in South America's crop belt. Traders also bought Soyabeans and sold corn after active unwinding of those spreads over the previous two sessions as the oilseed battled to recapture US planted acres this spring.
Corn was mixed, with old-crop months supported by tight supplies but capped by profit-taking pressure a day after the steepest rally in three months as the US Department of Agriculture confirmed a large corn export sale to an unknown buyer that is widely believed to be China. Mild US Corn Belt weather further pressured new-crop corn on expectations for greater corn plantings this spring.
Wheat drifted lower, following earlier pressure in corn. "It has been a dry outlook in southern Brazil and Rio Grande do Sul for finishing those beans and it continues to be so. I would call this a little bit of a supply scare," said analyst Rich Feltes with R.J. O'Brien.
Soyabean futures have mostly out paced gains in corn since early February as US farmers were expected to bolster corn acreage this spring, some of it at the expense of Soyabeans. Old-crop contracts have also steadily climbed in that time as lower supplies from Brazil and Argentina, due to a drought in the crucial growing phase in January and February, bolstered demand for US Soyabeans.
The USDA said in a report on Friday that drought had reduced the Soyabean crop in Brazil, the world's No 1 exporter, by 9 percent, and Argentina's crop by 11 percent, over the past three months. Noted crop forecaster Michael Cordonnier reduced his Brazilian Soya crop projection to 67 million tonnes this week, down 1 million from his previous forecast and below the USDA's latest view of 68.5 million tonnes. Cordonnier pegged the Argentine crop at 47 million tonnes, above USDA's 46.5 million.
Benchmark Chicago Board of Trade May Soyabeans rose 14-1/4 cents to $13.48-3/4 a bushel, a 1.1 percent jump that was the steepest in 2-1/2 weeks. New-crop November gained 12 cents, or 0.9 percent, to $13.11-1/2 per bushel. Old-crop corn futures were only moderately higher despite USDA confirmation of a 240,000-tonne sale of US corn to an unknown buyer on Tuesday.
CBOT corn for May delivery gained 2-1/2 cents, or 0.4 percent, to $6.62 a bushel after earlier hitting a two-month high of $6.66-3/4, while new-crop December corn fell by a penny, or 0.2 percent, to $5.67-1/2 a bushel. Wheat drifted lower after two days of gains, with May dipping 2-1/4 cents, or 0.4 percent, to $6.49 a bushel.