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CBOT soyabeans ends near 2-week high on stronger exports

CHICAGO: Soyabean futures at the Chicago Board of Trade climbed to their highest levels in nearly two weeks on Thursday, sparked by government export data reflecting stronger foreign demand for US soyabeans, traders said.

Soyabeans settled 7 to 9-1/4 cents per bushel higher, with March up 9-1/4 at $5.13, the contract's highest settlement since $5.23-1/2 on Jan. 28. Commodity funds were prominent buyers near the close, contributing to a late-session surge, traders said.

Soyabeans and other CBOT markets took direction from the US Department of Agriculture's weekly export sales report, released on Thursday, which suggested that the recent slide in soybean prices has stirred renewed foreign buying interest, traders said.

The USDA placed net US soybean sales for the week ended Feb. 3 at 951,600 tonnes, more than twice the previous week and the four-week average. Expectations ranged from 200,000 to 500,000 tonnes.

Mexico, at 216,500 tonnes, was the largest buyer listed. The USDA also cited a sale of 68,000 tonnes to "unknown destinations," often interpreted by traders to be China.

"Reports indicate good interest in US soyabeans from Mexico, Europe, and Asia," said Jack Scoville, a trader with Price Futures Group, in a report on Thursday. "China is reported to have bought up to 200,000 tonnes in the last two weeks."

US soybean exports for the current marketing year are running firmly ahead of last year, but prices have held near historically low levels, at least until recently, due to bumper crops the past few years in the US and South America.

US soybean sales commitments for the 1999/2000 marketing year through Feb. 3 stood at 18.233 million tonnes, according to the USDA, almost 12 percent above the year-ago level.

Improving crop conditions in South America may limit price upside in CBOT soyabeans, traders said. Beneficial rains fell in southern Brazil last week and Argentina this week, bringing some relief from dry conditions.

But persistent dryness since the start of soybean planting has likely taken a toll on the South American crop, many analysts believe. Some look for a slight downward revision in the USDA's forecasts for Brazil's or Argentina's soybean crops in the USDA's next round of monthly supply and demand reports on Friday.

In January's reports, the USDA projected soybean production in Brazil and Argentina at 31 million tonnes and 19 million tonnes, respectively.

Near the close, E.D. & F. Man International bought 800 March contracts and RJ O'Brien & Associates bought 700 March, traders said. Up to late trading, ADM Investor Services bought 400 March, FIMAT Futures sold 600 March, Refco Inc. bought 200 March and 200 May and Goldenberg, Hehmeyer & Co. sold 400 March. Soybean futures volume during on Thursday's pit session was estimated by the CBOT at 45,000 contracts, compared to 40,179 Wednesday.-Reuters