20000329

CBOT soya products close mostly up on soyabeans

CHICAGO: Chicago Board of Trade soya product futures closed mostly higher on Monday, underpinned by gains in soyabeans amid concerns over US crop prospects following sparse weekend rains in the Midwest.

CBOT soyameal settled $1.60 per ton higher to 80 cents lower, with May off 90 cents at $169.20.

Soyoil was 0.14 to 0.35 cents per lb higher, with May up 0.20 at 17.60 cents.

Sparse rainfall in the Midwest corn and soyabean growing region over the weekend supported soyabeans. Soil moisture in many areas had been depleted by an unseasonably warm and dry winter, and timely rains were needed ahead of spring sowings.

Weather Services Corp. meteorologist Mike Palmerino said on Monday only small amounts of rain fell over the weekend in the Midwest soyabean states and only scattered showers are likely this week. "Over the weekend it was pretty dry in the western Corn Belt. There was very little moisture."

He said there were chances of heavier rainfall in the Midwest next week, "but that's a week off and subject to change."

Traders meanwhile noted the outbreak of a vesicular disease in cattle in South Korea, and the suspected outbreak of foot-and-mouth disease on a cattle farm in Japan.

Both countries are regular importers of US animal feed, including corn and soyameal.

In South Korea, government officials said 105 cattle were destroyed to prevent the outbreak from spreading while farmers within 10 km of the infected farm have been ordered not to transfer cloven-hoofed animals to other parts of the country.

Following the suspected outbreak of foot-and-mouth disease in Japan's main Kyushu island, the government has ordered the farm to kill all its cattle.

Soyoil futures were supported by higher Malaysian palm oil futures overnight on strong exports.

Cargo surveyor Societe Generale de Surveillance said on Monday Malaysian palm oil exports from March 1 to 25 were 630,299 tonnes, up from 572,388 in the same February period.

Commodity funds bought 1,600 soyaoil contracts, and three soyameal contracts on the day.-Reuters