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CBOT soya ends up on weather jitters, China talk

CHICAGO: Chicago Board of Trade soyabean futures closed higher on Wednesday in a choppy weather-driven market, with fresh China talk also cited as boosting prices, traders said.

Soyabeans closed 3-1/4 to 5-3/4 cents higher, with March up 3-1/4 at $5.05-1/2. May was up 4 at $5.15-1/2.

"There are now rumblings China bought Brazilian beans and may have secured a cargo of US beans overnight," said Mark Cermak, president of futures for O'Connor and Co. "This of course is contrary to rumours last night that they may have washed out on three cargoes."

Overnight, rumours circulated that China had cancelled soyabean contracts with the United States.

Unseasonably warm weather in the US Midwest was central to the gains in soya as the pattern stirred concern of potential dry weather this spring and summer despite recent rainfall.

Also, talk circulated that US Midwest rains this week may fall short of previous forecasts, but some traders said any moisture shortfalls should be made up by the storms that were expected to follow.

Traders said key speculators were hesitant to be short the market amid the potential for a weather scare and resultant rally in the market sometime this spring and/or summer.

Weather in Brazil was more bearish than bullish. Clear skies were forecast where the Brazil soyabean harvest was under way. Wet weather in northern Brazil has slowed combining of the crop but rainy weather in southern Brazil recently has been buoying ideas for soyabean production there.

In late dealings, Cargill Inc. bought 200 July and 100 May near the close and local short covering exacerbated the gains, traders said.

Soyabean futures volume was estimated by the CBOT at 48,000 compared with 54,183 lots traded Tuesday.

Soyabean options volume was estimated at 20,000.-Reuters