BLBG: Soybeans Jump Above $11 a Bushel for First Time in Seven Months
Soybeans rose, trading above $11 a bushel for the first time in seven months, on speculation increased Chinese demand and lower South American output may further reduce U.S. inventories.
The oilseed climbed as much as 2.2 percent in Chicago today, extending its gains for a fourth day. U.S. exports since Sept. 1 are running 10 percent ahead of last year, the Department of Agriculture said April 30. Sales rose 35 percent in the week ended April 23, with China accounting for more than half the purchases, the department said.
“Current strong appetite from China may reduce U.S. stockpiles further as output in Argentina and Brazil is forecast to decline,” said Han Sung Min, a grain futures broker at Korea Exchange Bank Futures Co. in Seoul.
Soybeans for July delivery advanced as high as $11.15 a bushel in after-hours trading on the Chicago Board of Trade and traded at $11.1225 at 2:40 p.m. Singapore time. The most-active contract added 11 percent in April, its second monthly gain.
China, the world’s biggest buyer of the oilseed, will buy an additional 1.25 million metric tons to support local prices and increase reserves, the state grain administration said April 30. China bought 56 percent of the 834,600 tons of soybeans U.S. farmers sold in the week ended April 23, the USDA said in a separate report the same day.
The U.S. is the largest soybean grower. Stockpiles there will fall to 165 million bushels on Aug. 31, down 20 percent from a year earlier and the lowest since 2004, the USDA said.
Less Supply
Argentina, the third-largest grower after the U.S. and Brazil, will harvest 34 million metric tons this year, down from an earlier forecast for 36.2 million, because of drought and export restrictions, the Buenos Aires Cereals Exchange said.
Today’s gain in soybeans has limited losses in corn, which were under pressure from forecast for favorable crop weather that may help accelerate planting in the U.S. Midwest, Han said.
Corn for July delivery fell as much as 2.8 percent to $4.0225 a bushel and last traded at $4.0975. Prices gained 7.3 percent last week, the most since the week ended March 13. Still, the grain lost 0.3 percent in April, its third drop in the past four months.
July-delivery wheat declined as much as 2.3 percent to $5.57 a bushel and last traded at $5.6625. The contract jumped 6.2 percent on May 1, the biggest gain for a most-active contract since Nov. 24, after earlier reaching $5.74, the highest since Feb. 9.
