BLBG:Soybeans Climb as Slump to One-Month Low Lures Buyers, Investors
Soybeans rebounded from a one-month low on speculation that this week’s 5 percent slump will lure importers and investors betting global supplies may decline as dry weather returns to Brazil.
The oilseed for March delivery gained as much as 1.1 percent to $14.205 a bushel on the Chicago Board of Trade, and was at $14.1725 at 10:47 a.m. in Singapore. Futures fell to $13.9775 yesterday, the cheapest since Nov. 20, after China canceled U.S. purchases for the second time in three days.
Northern growing areas in Brazil, set to be the largest grower this season, may have dry weather in the 10-days that began yesterday, increasing crop stress, Telvent DTN Inc. said in a report. Acreage for corn and soybeans in Argentina will probably be reduced after excessive rains delayed planting, it said. Argentina is the world’s third-largest soybean grower.
“We’re looking at a technical recovery, buying after such a savage decline,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said from Melbourne today. “The bean market has obviously suffered over the previous few days.”
Soybeans, which traded at a record $17.89 in September, are headed for the biggest loss this week since the five days to Sept. 21. Still, prices have gained 17 percent this year after the worst U.S. drought since the 1930s.
Nonghyup Feed Inc., South Korea’s biggest buyer of feed grains, is seeking to purchase as much as 130,000 tons of soybean meal in a tender at 4 p.m. in Seoul today, the company said in a notice.
Corn for March delivery was little changed at $6.975 a bushel in Chicago, set for 4.6 percent loss this week, the biggest decline for the most-active contract since the period to June 15. Corn, which surged to a record in August, has advanced 7.9 percent this year.
Wheat for March delivery was little changed at $7.90 a bushel, poised for a 2.9 percent weekly loss. Futures, which advanced to the highest in almost four years in July, are up 21 percent this year.
To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
