By Luzi Ann Javier May 21 (Bloomberg) -- Soybean futures advanced, trimming the fourth straight weekly decline, on speculation rising imports by China, the world’s largest buyer, may help drain excess global supply. Soybeans for July delivery rose 0.2 percent to $9.4625 a bushel at 12:41 p.m. Singapore time, paring the weekly loss to 0.8 percent. The U.S., the world’s largest soybean grower and exporter, sold 478,462 metric tons during the week ended May 13, double the average from the prior four weeks, the Department of Agriculture said yesterday. Of the total, 60,000 tons were purchased by China, the world’s biggest importer. Concern that hoarding by Argentine farmers would reduce supplies also supported prices. “Increasing demand from Asia, in particular China, for higher protein diets has underpinned an increase in global demand for soybeans,” CWA Global Markets Pty. in Sydney said in a report published today. Still, it said “the transition from a demand-led bull phase into a supply-led bull phase appears complete,” as bumper harvests in South America enter the supply pipeline. Farmers in Argentina, the third-largest shipper, are hoarding newly harvested supplies in a bet the peso will plunge, boosting returns on exports, Rosario-based commodity trading company Alabern, Fabrega y Cia said. The peso will decline 7.3 percent to 4.2 per dollar by year-end, the biggest decline among 33 currencies with forecasts available, according to data compiled by Bloomberg. The peso has declined every year since 2003, losing a quarter of its value. ‘Opportunities’ “Currencies are providing producers with the best opportunities,” Commonwealth Bank of Australia said in a report e-mailed today. The Dollar Index, which tracks the value of the greenback against six major currencies including the euro, fell for a third day, making U.S. supplies less expensive for holders of other currencies. The euro rose to a one-week high against the dollar on speculation European Union officials meeting today will discuss more measures to counter the region’s spreading debt crisis. Corn for July delivery was little changed at $3.6175 a bushel on the Chicago Board of Trade at 12:59 p.m. Singapore time, set for a 0.3 percent decline this week, the third such loss. July delivery wheat fell 0.3 percent to $4.685 a bushel, taking the weekly loss to 0.6 percent. World corn production will likely rise 1.9 percent to a record 822 million tons in the year through June 2011 from a year earlier on a bigger U.S. crop, the International Grains Council said yesterday. The council also raised its forecast for the global wheat harvest to 660 million tons. “The global supply for 2010-2011 looms as a possible negative for prices, with the IGC raising their production forecast,” Commonwealth Bank of Australia said. To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

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