NEW YORK — Soybean prices rallied Wednesday after China stepped up its purchases of U.S. supplies of the crop.
Jason Ward, an analyst with Northstar Commodity in Minneapolis, said China's recent purchase of soybean oil from the U.S. buoyed demand expectations in a market where supply is already tight. China typically purchases its soybean oil from South America, but a dispute with Argentina sent it to the U.S. market.
Soybeans for July delivery are up 12.5 cents, or 1.3 percent, at $9.435 a bushel.
Farmers won't start harvesting the 2010 soybean crop until at least September, which means supplies won't be replenished for a few months. A big buyer like China could drain current supplies particularly fast.
The USDA report is also expected to show corn supplies fell, Ward said.
Corn for July delivery rose 1 cent to settle $3.3825 a bushel. Wheat fell 4.25 cents to $4.28 a bushel.
Gold for August delivery dropped $15.70 to $1,229.90 an ounce. Silver for July delivery fell 28.8 cents to $18.189 an ounce. July copper rose 7.05 cents to $2.85 a pound. Gold has become an alternative investment to currencies and stocks in recent weeks.
Benchmark crude for July delivery surged $2.39 to $74.38 a barrel on the New York Mercantile Exchange.
July heating oil rose 4.43 cents, or 2.3 percent, to settle at $2.0096 a gallon, while gasoline climbed 5.06 cents, or 2.5 percent, to $2.0397 a gallon. Natural gas fell 13.1 cents, or 2.7 percent, to $4.677 per 1,000 cubic feet.
