Bloomberg News

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

October 24, 2012

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

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 0.9 percent to $15.70 a bushel at 10:01 a.m. on the Chicago Board of Trade, after touching $15.7125, the highest since Oct. 9. The oilseed had declined 13 percent through yesterday since reaching a record $17.89 on Sept. 4. The price touched $14.8575 on Oct. 15, the lowest since July 3.

Soybean-meal futures for December delivery rose 1.3 percent to $482.20 for 2,000 pounds on the CBOT, heading for 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 advanced 0.6 percent to $7.605 a bushel on the CBOT, heading for the first gain this week. The price tumbled 11 percent as of yesterday 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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