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CBOT soyabeans end higher on soyaoil rally, await USDA

CHICAGO: Soyabean futures at the Chicago Board of Trade ended higher on Wednesday on position squaring ahead of Friday's USDA grain stocks and plantings reports, and on spillover support from a rally in soyaoil.

CBOT soyabeans settled 1 to 3-1/2 cents per bushel higher, with May up 2-1/2 at $5.29.

"Players are evening out positions ahead of the government reports," said analyst Bob Lekberg of Goldenberg Hehmeyer. He said limited farmer selling in cash markets was supportive.

He said the market was also seeing routine end of the month and first-quarter position squaring.

Soyabeans were also lifted by a rally in soyaoil amid a flurry of commodity fund buying, which took the May contract to five-month highs. May soyaoil ended 0.29 cent per lb higher at 17.79 cents, its highest close since touching 17.85 on Oct. 12.

The US Department of Agriculture is scheduled to release on Friday morning its quarterly report on corn, soyabean and wheat stocks, and data on prospective plantings for this year.

Trading in soyabeans was choppy amid a lack of fresh fundamental leads. The impact of weather in the Midwest growing region which has been a major driving force the last couple of weeks was almost muted on Wednesday.

An unseasonably warm and dry winter had depleted soil moisture in many parts of the Midwest region ahead of spring sowings, but the weather has been on the mend of late.

Weather Services Corp. meteorologist Joel Burgio on Wednesday forecast light rainfall off and on this week, with the possibility of heavier rainfall next week in the Midwest.

"It continues to look a bit uncertain, but there's a better chance for rainfall next week. However, we're not convinced it's a major rain event."

During the past 24 hours, light precipitation of up to 0.10 inch fell in the eastern portion of the Midwest and it was generally dry in the west, he said.

Traders said improving weather conditions in Brazil, the world's second largest soyabean producer after the United States, was expected to boost the pace of the harvest.

WSC said early Wednesday that conditions were favourable for harvests from Parana northward. Parana accounts for a quarter of Brazil's total soyabean crop. Funds bought 1,700 contracts. Cargill Inc. sold 500 May, 100 July, 200 November, Term Commodities sold 300 May, FIMAT Futures bought 800 May, 700 July, sold 500 July, Carr Futures bought 300 May, O'Connor bought 200 May.

Soyabean futures volume was estimated by the CBOT at 37,000 lots, compared to the 31,033 traded Tuesday.

Soyabean options volume was estimated at 10,000 lots.-Reuters