US MIDDAY: soyabeans rise

Soyabeans Higher

November 02, 2012: US soyabean futures rose for a third straight day on Thursday, led by strength in Chinese soya markets tied to encouraging economic data that country, the world’s biggest soya importer. Grains followed soyabeans higher, with wheat up for a second day on worries about global crop weather and corn up for a third straight session on technical buying.

As the Chicago Board of Trade as of 10:50 am CDT (1550 GMT), most-active January soyabeans were up 18 cents, or 1.2 percent, at $15.66-3/4 per bushel. December wheat was up 9 cents, or 1.0 percent, at $8.73-1/2 a bushel, and December corn was up 3-1/4 cents, or 0.4 percent, at $7.59 a bushel.

Soyabeans got a boost from data showing private sector factories in China were at their busiest in eight months in October. The data followed other signs in October of economic revival in the country and could signal stepped-up demand for soya. “The economic data was interpreted favourably, leading to some ideas that they are going to import more beans,” said Jerrod Kitt with the Linn Group, a Chicago brokerage.

Most-active May soyabean futures on China’s Dalian exchange rose 2.2 percent on Thursday, the contract’s biggest one-day rise since July 30, a factor that also buoyed Malaysian palm oil futures. China will harvest a smaller soyabean crop this year than in 2011 because of fewer plantings in a key province, the US agricultural attache in Beijing said on Thursday.

CBOT soyabeans were further strengthened by concerns that the South American soya crop may be smaller than anticipated as wet weather delays plantings. Wheat futures rose on technical strength and concerns about production in Russia and the United States. Agricultural analysts SovEcon cut their forecast for Russia’s 2012 wheat crop to 37.5 million tonnes, from 38 million previously, to reflect weak harvest data, SovEcon’s chief executive said.

 

Courtesy: Reuters

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