Tech trading sends soybeans higher

(Agriculture.com) – U.S. soybean futures rose Monday, boosted by technical buying and uncertainty about the weather for South America’s soy crop.

Chicago Board of Trade soybean futures for January delivery settled up six cents, or 0.4%, at $14.24 3/4 a bushel.

Soybean futures rose on technical buying, as some market participants expect prices to rise further after steep recent losses, due both to tight supplies and the commodity’s trading pattern.

“What drove it higher was probably just follow-through on Friday’s rally,” said Anne Frick, senior oilseed analyst with Jefferies Bache in New York. “We’ve had a big selloff … You could argue that there’s a kind of a bottoming pattern developing in the market.”

Soybeans also benefited from mixed views on the weather for South American crops. World soybean supplies are historically tight after droughts in both South America and the U.S. earlier this year. That has left traders looking toward the next soy crops in Brazil and Argentina to see whether supply levels will rebound.

Traders on Monday had mixed views of the weather in South America. Some said futures rose due to concerns about dryness in parts of Brazil and too much rain in Argentina.

Futures also rose after the U.S. Department of Agriculture on Monday morning reported fresh soybean oil sales of 20,000 metric tons to unknown destinations. The sales continue a monthlong trend of daily sales announcements, which are typically rare for soybean oil.