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CBOT soyabeans close up as wheat and corn jump

CHICAGO: A surge to record highs in corn and contract highs in wheat boosted CBOT soyabean futures to a higher close, traders said.

Demand was broad based in all commodities with commercial firm Produce Grain a noted purchaser of four million bushels of July soyabeans, they said.

Fund buying in soyabeans was estimated at 15.0 million bushels with Refco Inc the key purchaser of eight million bushels of July and two million November, the traders said.

Rain-delayed soyabean harvesting in Brazil and talk of possible frosty weather in Argentina also boosted prices.

But traders said the main factor for the rally in soyabeans was the sharp leap in corn and wheat values.

"There was support from all areas in successive waves. It was pretty impressive," said Vic Lespinasse of Dean Witter Reynolds.

Late hedge selling trimmed the advances in the soyabean pit, the traders said.

Soyabeans closed eight to 11-3/4 cents per bushel higher, with May up 8-3/4 at $7.64-3/4.

CBOT soya product futures closed higher on spillover support from a jump to record highs in corn and new contract highs in wheat, traders said.

Demand was broad based and mainly coming from the surging markets in the other pits, they said.

Refco Inc and Merrill Lynch Futures were the key purchasers of December soyaoil while demand in the May and July was more broad based and included commercial buying, they said.

Soyaoil closed 0.13 to 0.25 cent per lb higher, with May up 0.18 at 25.76.

Soyameal was $2.40 to $7.00 per ton higher, with May up $2.40 at $240.70.

CBOT corn futures closed up sharply with nearby May ending up nearly the 12-cent-per-bushel trading limit after notching record high prices during the session, traders said.

May set a record high of $4.25 per bushel, up from the previous record of $4.19-1/2 set Tuesday.

"Old crop corn stocks are tight but the biggest impact this week has been the resumption of fund participation on the long side of all three markets, wheat, corn and beans," said Skip Searcy, trading specialist for FIMAT Futures.

Corn sagged slightly early but briefly. Traders said huge buy orders were resting just under the market and when those orders were touched the market surged in fast dealings.

"It looks like a bull, acts like a bull and smells like a bull," said Mark Cermak of O'Connor and Co.

Cermak said the short term objective for May corn was met Wednesday at the $4.25 mark. That scenario again triggered ideas for possible long liquidation pressure Thursday.

"We'll see how we rate tomorrow now that everybody's long and we have a three-day weekend," O'Connor's Ron Kucha said.

Corn closed four to 10 cents per bushel higher, with May up 10 at $4.24-1/4.

CBOT soft red winter wheat futures closed strongly higher and near new contract highs set during the session on renewed worries about dry weather in U.S. Plains hard red winter wheat growing areas, traders said.

"There was broad based buying all over down here led by wheat initially because they're reducing the amount of rain in the forecast for the next few days," said Vic Lespinasse of Dean Witter Reynolds.

The new high for July is $4.90-1/2, up from the previous high of $4.82 set Tuesday. A new high in May also was notched at $5.24, up from the previous high of $5.21-1/2.

Recent warm weather in the Plains likely further depleted soil moisture levels. Hill City in northwestern Kansas posted a 92 degree Fahrenheit high Tuesday and most other HRW areas saw temperatures climb into the 80s F, meteorologists said.

Wheat closed 12 cents per bushel higher to one cent lower, with May up 11 at $5.23.-Reuter