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CBOT soyabeans close higher on USDA export data

CHICAGO: Chicago Board of Trade soyabean futures closed higher Thursday on support from the US Department of Agriculture's weekly export sales report, traders said.

Soyabeans closed 1/4 to 2 cents higher, with March up 1-1/2 at $5.07. May closed 1 cent higher at $5.16-1/2.

"The exports were part of it but there are numerous factors right now including the weather," said Don Roose, analyst for US Commodities in Des Moines, Iowa. "The soil moisture reserves in the Midwest are down and it's hard to replenish those quickly."

Recent rainfall in the Midwest helped diminish concerns about dry weather this winter but there are some hints of potential dry weather later this spring and summer in the US Midwest.

The weather jitters plus Thursday's government export readings were sufficient to buoy soyabean futures but bullish momentum was lacking.

USDA's weekly export report showed net export sales of US soyabeans during the week ended March 2 at 505,700 tonnes, near the high end of estimates for 400,000 to 600,000 tonnes. The sales included an increase of 169,000 tonnes for China, bringing to roughly 1 million tonnes the total of Chinese purchases recently.

The net sales total for soyabeans was 9 percent below the previous week and 36 percent below the four week average, according to the USDA.

China soyabean buying patterns continued to be a key talking point with this week's market volatility leading to speculation of China cancellations of previous contracts for US soyabeans versus talk that China was seeking or may have bought additional soyabeans.

China bought one cargo of US soyabeans and one cargo of South American beans for a total of 110,000 tonnes in the past couple of days, traders in Hong Kong said on Thursday.

A Panamax-sized cargo of 55,000 tonnes of US soyabeans was bought by one of China's biggest oilseed crushing facilities for about $222 a tonne C&F China, traders said.

Weather in Brazil was more bearish than bullish with clear skies forecast where the Brazil soyabean harvest was under way.

Position squaring was noted Thursday before the release Friday at 7:30 a.m. CST of USDA's March supply/demand report.

Analysts expect USDA to boost 1999-2000 US soyabean exports from 10 to 25 million bushels and trim the soyabean crush 5 to 10 million bushels. The analysts also said USDA may leave the 1999-2000 US soyabean carry-over unchanged from the February forecast at 345 million bushels or perhaps drop the carryout down to 325 million bushels.

Technical traders cited support in the May contract Thursday at $5.10-3/4 and resistance at $5.19-1/4. May traded in a range from $5.15-1/2 to $5.20.

Funds bought 1,200 lots Thursday led by O'Connor and Co's purchase of 500 May, traders said. Gelber Trading bought 500 May, ADM Investor Services bought 300 each of May and July, and Refco Inc. bought 300 May and 200 July, traders said. But Refco was a noted seller of 300 May near the close which took soyabean futures prices down smartly from the day's highs.

Commercials sold 1,500 lots with FIMAT Futures a key seller of 700 May.

Soyabean futures volume was estimated by the CBOT at 45,000 lots, below the 49,265 lots traded Wednesday.

Soyabean options volume was estimated at 16,000 lots.-Reuters