Chicago Board of Trade soyabean futures closed higher for a sixth straight session on Tuesday on technical buying and hopes that the United States and China will progress toward an interim trade deal, traders said. CBOT January soyabeans settled up 4 cents at $9.01-1/4 per bushel but stayed inside of Monday's trading range.
Commodity funds hold a net short position in CBOT soyabean futures, leaving the market vulnerable to bouts of short-covering. CBOT January soyameal futures ended up 20 cents at 298.70 per short ton and January soyaoil rose 0.09 cent to finish at 31.68 cents per pound.
The US Department of Agriculture in its monthly supply/demand report left its forecast of US 2019/20 soyabean ending stocks unchanged at 475 million bushels, roughly in line with trade expectations.
The USDA raised its forecast of world soyabean ending stocks for 2019/20 to 96.40 million tonnes, up from 95.42 million last month and above an average of analyst expectations for 95.46 million. Brazil's crop supply agency Conab raised its forecast of the country's 2019/20 soyabean crop to 121.092 million tonnes, from 120.860 million last month.
The USDA left its forecast of Brazil's 2019/20 soyabean crop, the world's largest, at 123 million tonnes, unchanged from last month. President Donald Trump does not want to implement the next round of scheduled tariffs against Chinese goods on Dec. 15, but he wants "movement" from China to avoid them, US Agriculture Secretary Sonny Perdue said on Monday.
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