US soybean futures on the Chicago Board of Trade closed higher on Thursday in a light technical bounce after prices fell to three-month lows this week, traders said. Fresh sales to China add support; USDA confirmed sales of 230,000 tonnes of US soyabeans to China, including 55,000 tonnes for 2009/10 and 175,000 for 2010/11. Firm cash soyabean and soyameal markets in US Midwest help underpin futures. Prospects for bumper South American soya crops continue to hang over the market.

Traders monitoring hotter/drier weather in parts of Argentina, but overall excellent soya growing weather continues in South America. CBOT March soyabeans rose 4 cents to settle at $9.54 per bushel; new-crop November closed up 5-1/2 cents at $9.34. March soyameal ended up $1.30 at $287.50 per ton. March soyaoil rose 0.43 cent to settle at 37.00 cents per lb. Commodity funds net bought 3,000 CBOT soybean contracts, 1,000 soyameal and 2,000 soyaoil, traders said.

Investors worried China may tighten monetary policy after strong quarterly growth. CBOT soyabeans seen as oversold. Ahead of Thursday's trade, March soyabeans were down $1.24-3/4, 11.6 percent, from their January 4 high of $10.74-3/4 per bushel. Taiwan's Kaohsiung BSPA to buy 48,000 tonnes soyabeans from LDC. Malaysian palm oil rebounds from two-month lows on short-covering. Traders wary of President Barack Obama's plans to limit risk-taking by the biggest banks.

Copyright Reuters, 2010