CBOT Soybeans close higher on USDA data

CBOT soybeans closed with decent gains Tuesday after the much-awaited USDA crop report underpinned the market my pegging 2008 US production at 2.97 billion bushels, slightly lower than trade estimates of 3.001 billion.

USDA lowered the yield to 40.5 bu/ac down from 41.6 in July but increased harvested acres to 73.3 up from July's estimate of 72.1 million acres

November soybeans ended 18 cents higher at $12.18/bushel and December soymeal closed $11.50 higher at $332.00/ton.

The USDA put US soybean ending stocks for 2007/08 at 135 million bushels, the tightest since 2003.

The market was overdue a correction after recent steep declines but overall the trend remains bearish a trader said.

Whilst nearby weather remains largely nonthreatening the market could work a little lower yet, but the threat of early frost significantly damaging late-planted beans will likely prevent this market working much lower.

Still, soybeans still appear to be inextricably linked to crude oil & will continue to follow that market closely.