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CBOT Soyabeans end higher on fund buying, Russia

CHICAGO: Soyabean futures at the Chicago Board of Trade ended higher on Tuesday, buoyed by commodity fund buying and optimism over the possibility of the United States supplying Russia with more Soyabeans and Soyaoil.

CBOT Soyabean futures finished the day five to 7-1/4 cents per bushel higher, with the May contract rising 5-1/2 cents to $5.01-1/2.

"Funds were buying and Glickman was singled out," Vic Lespinasse, floor commentator for AG Edwards said. "Glickman gets my vote for best supporting actor in the beans today."

U.S. Agriculture Secretary Dan Glickman told Sparks' Companies Inc's annual policy conference -- just before the CBOT opened for business -- that there was "some indication" Russia might need additional Soyabeans and Soyaoil as part of an additional U.S. food aid package to the country.

Deliveries of an initial $1 billion package began recently. "I think it's fair to say they are interested in another large package. We are going to move ahead as aggressively as we can on this," he told reporters at the conference.

The first package of U.S. food aid included 500,000 tonnes of Soyabeans and Soyameal, 1.7 million tonnes of wheat, 500,000 tonnes of corn and 120,000 tonnes of beef and other products. Traders also noted developments in Yugoslavia, adding that any progress toward a political settlement to the crisis in Kosovo would be supportive.

"If there is some positive forward movement on the Kosovo situation, it could lead to improved relations between the U.S. and Russia and this could in turn result in us giving more food aid to Russia," one trader said.

The traders also said fund buying was likely short-covering ahead of Wednesday's release of the plantings and stocks reports by the U.S. Department of Agriculture.

U.S. farmers are widely expected to plant a record number of Soyabean acres this year. Based on the average of a Reuters survey of analysts, U.S. 1999 Soyabean plantings are projected at 74.18 million acres, against 72.38 million in 1998.

Through the day funds bought 4,000 lots. FIMAT Futures bought 700 May, 100 August and 200 November contracts, Goldenberg Hehmeyer bought 1,000 November, Iowa Grain bought 500 May, E D&F Man international bought 100 July and 800 May.

Soyabean futures volume was estimated by the CBOT at 45,000 contracts, compared to 31,350 on Monday.-Reuters