ADVERTISEMENT

ADVERTISEMENT

Soybeans at 2-week high on crop doubts, China imports

PARIS/SINGAPORE - Chicago soybean futures rose on Monday to their highest in more than two weeks, supported by doubts over U.S. harvest prospects ahead of an official forecast this week, and signs of robust Chinese demand for the oilseed.

1927619+Soybeans.jpg

PARIS/SINGAPORE - Chicago soybean futures rose on Monday to their highest in more than two weeks, supported by doubts over U.S. harvest prospects ahead of an official forecast this week, and signs of robust Chinese demand for the oilseed.

Corn rose in step with soybeans. Wheat hit a two-week top as it rose for a fourth consecutive session, as strong U.S. exports sustained a rebound from a six-week low last Monday.

Chicago Board of Trade November soybeans climbed 0.8 percent to $9.70-3/4 a bushel by 1231 GMT, after earlier touching its highest since July 24 at $9.74-1/4.

December corn was up 0.9 percent at $3.87-1/4.

"There are some weather concerns in the U.S. Midwest as it is likely to be hot and dry. It is prompting traders to cover their short positions," said Kaname Gokon of brokerage Okato Shoji in Tokyo.

ADVERTISEMENT

"We have the USDA report which could show some reduction in production but supplies are still going to be in surplus in the 2015/16 season."

Analysts polled by Reuters on average expected a cut in U.S. Department of Agriculture (USDA) forecasts for corn and soybean yields, harvested acres and total production.

The reduced output expectations follow overly wet weather in parts of the Midwest early this season.

There was additional support for soybeans on hopes of stronger Chinese demand, contrasting with prevailing concerns about a faltering Chinese economy that have eroded many commodity prices.

China, the world's top soy buyer, is likely to import a record 76 million tonnes of the oilseed in the year ending September, up 8 percent from the previous year, according to the latest estimate from an official think tank.

It also imported a record 9.5 million tonnes of soybeans in July, up 17.4 percent from 8.09 million tonnes in June, customs data showed on Saturday.

"Soybean prices began to rally in Asian hours after China reported a strong rise in soybean imports to all time highs in July," Commonwealth Bank of Australia analyst Tobin Gorey said in a market note.

Private exporters also reported the sale of 132,000 tonnes of U.S. soybeans to China for delivery during the 2015/16 marketing year, the USDA said on Friday.

ADVERTISEMENT

CBOT September wheat inched up 0.1 percent to $5.10-3/4 a bushel. Earlier in the day, it hit its highest since July 24 at $5.14-3/4 a bushel. 

Related Topics: CROPSSOYBEANS
What To Read Next
Gevo will be making sustainable aviation fuel in Lake Preston, South Dakota. Summit Carbon Solutions plans to capture carbon emissions from the facility.
Even if it's not a lucrative venture, the hobby of raising rabbits continues at this farm near Sebeka, Minnesota.
Snow removal takes time and man hours, but necessary to good operations
South Dakota Public Utilities Commission hits Banghart Properties LLC, with cease-and-desist on grain trades.