Chicago Board of Trade soyabean futures rose on Tuesday in a short-covering bounce ahead of a US government crop report due later this week and as late-developing crops in parts of the Midwest sparked concerns over yields, traders said.
CBOT November soyabeans settled up 14-1/4 cents at $8.72 per bushel, rebounding from a near four-month low reached in the prior session. CBOT December soyameal ended up $4.10 at $298.10 per short ton, while December soyaoil rose 0.08 cent to settle at 28.53 cents per pound.
Traders squared positions ahead of a monthly supply-and-demand report from the US Department of Agriculture, which is scheduled for release on Thursday. The report is expected to show lower US production. The USDA on Monday afternoon said the US soyabean crop was rated 55% good to excellent as of Sept. 8, steady with a week earlier and in line with analyst expectations.
The USDA said 92% of the soya crop was setting pods as of Sunday, below the five-year average of 99%. The late development of the crop could dent yields. Traders are monitoring developments in US-China trade talks. White House adviser Peter Navarro on Tuesday called for investors, the public and others to be patient ahead of negotiations planned for next month. The USDA reported private sales of 138,000 tonnes of US soyabeans to Mexico for 2019/20 marketing year shipment, and a total of 195,750 tonnes of soyameal for 2019/20 and 2020/21 shipment.