BLBG:Soybeans Advance as Drop to Seven-Week Low May Increase Demand
Soybeans gained, extending the oilseed’s fourth straight quarterly advance, on speculation that a slump to the lowest price in more than seven weeks may spur increased buying from importers. Wheat climbed.
Soybeans for November delivery rose as much as 0.7 percent to $15.84 a bushel on the Chicago Board of Trade and were at $15.795 at 2:33 p.m. in Singapore. The price ended at $15.73 yesterday, the lowest close since Aug. 7. Futures, which hit a record $17.89 on Sept. 4, are set for an 11 percent gain this quarter as the worst U.S. drought in half a century cut output.
U.S. exporters reported sales of 140,000 metric tons to unknown destinations for delivery in the 12 months that began Sept. 1, the U.S. Department of Agriculture said yesterday. Futures have lost 12 percent from their all-time high on concern a slowing global economy and rising prices will hurt demand.
“It’s probably just a little bit of a bounce,” said Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd. “If we see prices come off and demand is still there, then that is a supportive factor.”
December-delivery wheat advanced as much as 0.6 percent to $8.745 a bushel and was at $8.7275, poised for a fourth quarterly gain. Corn for December delivery fell as much as 0.5 percent to $7.215 a bushel before trading at $7.2225. Corn, which reached a record in August, is set for a three-month gain.
To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
