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CBOT soya ends up on light US Midwest rainfall

CHICAGO: Soyabean futures at the Chicago Board of Trade closed higher on Friday on small amounts of rainfall forecast for the US Midwest, traders said.

Fund buying, estimated at 7,500 lots, lead the way up as several key funds chose to cover at least a portion of their short positions in the market before the weekend.

CBOT soyabeans closed 5 to 9 cents per bushel higher, with May up 8-3/4 at $5.30-3/4.

"It all started early in the morning when they started taking some rain out of the forecasts. There are only modest amounts of rain now for the Midwest," said Vic Lespinasse, floor spokesman for A.G. Edwards and Co.

The US Midwest corn and soyabean states should receive minor amounts of rainfall over the next several days as they move closer to the spring seeding season, a Weather Services Corp. meteorologist said Friday.

However, recent government reports forecast a good chance for hot, dry weather this spring and summer in the Midwest.

The weather jitters continued Friday amid a fall and winter in the US Midwest that saw less-than-desired moisture in the Midwest that was needed to recharge diminished soil moisture reserves.

Traders said there was talk some analysts may be scaling back estimates on this year's US soyabean acres because of ongoing concerns there may be a drought this spring and summer. USDA will release its preliminary planting report for spring crops on March 31.

O'Connor led buying with about 4,000 May contracts. Commercial firms Archer Daniels Midland, Cargill, and Term Commodities were major sellers as was FIMAT.

Soyabean futures volume was estimated by the CBOT at 50,000 lots, above the 48,731 lots traded Thursday.

Soyabean options volume was estimated at 13,000 lots.-Reuters