Bloomberg News

Soybeans Rise on Global Demand for U.S. Supplies; Corn Drops

October 24, 2012

Soybeans rose to a three-week high on signs of improving demand for supplies from the U.S., the world’s largest grower last year. Corn declined.

U.S. exporters sold 105,000 metric tons of soybeans for delivery before Aug. 31 to unknown destinations, the U.S. Department of Agriculture said today. China, the world’s biggest buyer, boosted imports by 20 percent in September from a year earlier with U.S. shipments almost four times higher than a year earlier, the Customs Administration reported today.

“Export business continues to be very good for soybeans,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “There appears to be no slowdown in Chinese demand.”

Soybean futures for January delivery gained 1.1 percent to close at $15.7225 a bushel at 2 p.m. on the Chicago Board of Trade, after reaching $15.77, the highest since Oct. 1. The price touched $14.8575 on Oct. 15, the lowest since July 3.

Soybean-meal futures for December delivery rose 1.2 percent to $481.90 for 2,000 pounds on the CBOT, capping the first six- day gain since July 20.

U.S. export sales for delivery in the marketing year that began Sept. 1 are 35 percent higher than at the same time a year earlier, the USDA said Oct. 18. U.S. supply on Aug. 31 is forecast to drop to 4.4 percent of domestic use and exports, the smallest reserves since 1966. U.S. production was estimated by the government at the lowest since 2008 after the worst drought since 1956 reduced Midwest yields.

Corn futures for December delivery declined 0.2 percent to $7.545 a bushel on the CBOT, the third straight drop. The price has tumbled 11 percent from a record $8.49 on Aug. 10, as demand slowed and overseas buyers shifted to cheaper grain from other suppliers.

Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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