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CBOT soyabeans climb to 5-week highs on USDA data

CHICAGO: Soyabean futures at the Chicago Board of Trade surged on Wednesday to end at the highest levels in over five weeks, sparked by government data reflecting a lower US supply outlook for the year ahead.

Soyabeans settled 3 to 7-1/4 cents per bushel higher, with March up 5-3/4 cents at $4.80-1/4, the contract's highest close since $4.87-1/4 on Dec. 7.

In reports released early Wednesday, the US Department of Agriculture trimmed its estimate for the 1999 US soyabean crop by a larger than expected amount, and subsequently dropped its projection for 1999/2000 ending soyabean stocks.

The USDA, in its final estimate for 1999 production, placed the US soyabean crop at 2.643 billion bushels, down 30 million bushels from its November report figure and about 23 million under trade expectations. In 1998, US farmers grew a record 2.741 billion-bushel crop.

"The soyabean production report gave us the momentum we needed," said Mark Weidner, grain and oilseed analyst for Cargill Investor Services in Chicago. "And beans to some extent followed the corn market."

CBOT corn jumped more than 7 cents in most contracts and ended at the highest levels in over three months, also on lower-than-expected USDA stocks and production data.

With output for the 1999 soyabean crop reduced, the USDA hacked 30 million bushels off its ending stocks estimate for 1999/2000, moving it to 365 million, which is up from 348 million in 1998/99. The USDA's soyabean export outlook for 1999/2000 remained unchanged at 865 million bushels.

Other bullishly viewed numbers arose from the USDA's latest quarterly stocks report, which listed US soyabean supplies as of Dec. 1 at 2.182 billion bushels, down 4 million bushels from a year earlier and about 27 million below expectations.

But price gains in soyabeans were stymied by an improved crop outlook for South America's soyabean belt, traders said. Scattered rain showers and thunderstorms were expected in the dry, southern areas of Brazil over the next four to five days, Weather Services Corp. said. Amounts of 1/2 to 1-1/2 inch were projected.

The rains should provide some relief to soyabean acreage suffering from dry conditions, Weather Services said.

Up to the last 45 minutes of trading, ABN AMRO Inc. bought 500 March contracts, Shatkin Arbor Karlov bought 200 each in March, May and November and R.J. O'Brien & Associates sold 1,200 March.

Soyabean futures volume during Wednesday's pit session was estimated by the CBOT at 66,000 contracts.-Reuters