Chicago Board of Trade soyabeans ended higher on Wednesday following a rally to fresh 15-1/2-year highs in soyaoil futures on strong Chinese demand and US supply worries, traders said.
"Soyaoil is in a position where it can't lose," one CBOT cash-connected trader said. "Chinese crush margins are poor, and the crush has been cut back because of smaller soyameal demand due to bird flu there."
CBOT soyaoil ended up 0.45 cent per lb to down 0.05 cent, with March soyaoil up 0.44 cent at 32.14 cents per lb, after rallying to 32.35 cents, the highest level since July 1988.
The country's interim measure for imports of genetically modified soya expires on April 20, and suppliers need to reapply for new permits.
China imported 20.7 million tonnes of soyabeans in 2003, according to its custom figures. US cash soya basis markets were steady to firm across the Midwest on Wednesday, dealers said.
In overnight export business, Taiwan bought 15,000 tonnes of US soyabeans, and Egypt said it sought 15,000 tonnes of soya oil.
The approach of the full-scale harvest of a projected record South American soya crop limited CBOT gains on Wednesday, brokers said.
Still, concerns lingered that wet weather in parts of Brazil, the No 2 global soya producer, may be harming soya. Rolling of CBOT March soya positions continued ahead of the February 27 first notice day for deliveries, CBOT traders said.
CBOT soya registrations late on Tuesday totalled 267 contracts, down from the 302 lots registered late on Monday.
Registration of a contract does not mandate delivery. The CBOT March soyabean crush margin ended up 0.71 cent at 61.14 cents per bushel.
Estimated CBOT soyabean volume on Wednesday was 30,912 lots, compared with Tuesday's 128,296. Options trade was seen at 7,175. Soyameal futures volume was 11,942, compared with Tuesday's trade of 48,706 lots.
Meal options trade was estimated at 620 lots. Soyaoil volume was estimated at 16,251 lots, compared with Tuesday's trade of 36,787. Soyaoil options trade was seen at 4,418 lots.