Soybeans rose the most in a week on speculation that an end to the global recession will boost demand for the oilseed to make food and animal feed.
Economies will recover at various speeds, led by China and India, the Organization for Economic Cooperation and Development said. The Asian countries are the world’s biggest consumers of vegetable oil made from soybeans. U.S. payrolls in March rose the most since March 2007, signaling a rebound in the job market.
“The world recovery is going to increase demand for soybeans more than people expect,” said Tim Hannagan, an analyst at PFG Best Inc. in Chicago. “People don’t want to be sellers before the start of the U.S. planting and growing seasons.”
Soybean futures for May delivery gained 8.5 cents, or 0.9 percent, to $9.445 a bushel on the Chicago Board of Trade, the biggest increase since March 29. The commodity has dropped 9.9 percent this year.
On March 31, the price fell to $9.305, the lowest level for a most-active contract since March 16.
“We held above last week’s low the past two days and that encouraged some short-covering” by speculators unwinding bets on lower prices, Hannagan said.
The crop in the U.S. was valued at $31.8 billion last year, second only to corn, government figures show. The U.S. is the world’s biggest soybean exporter.
To contact the reporter on this story: Jeff Wilson in Chicago at email@example.com