Soybeans rose on speculation that the government this week will cut its estimate of U.S. inventories on hand before this year’s harvest, signaling stronger demand for the oilseed.
Inventories on June 1 probably slipped to 577 million bushels, down from 596 million a year earlier and the smallest total since 2004, said Anne Frick, a senior commodity analyst for Prudential Bache Commodities LLC. U.S. demand for soy-based animal feed may increase the next three months as chicken output gains and livestock prices remain high, she said.
“Tightening supplies is providing a small boost,” Frick said from New York. “Domestic usage of soybean meal looks likely to recover this summer, given the increase in broiler numbers and feeding profitability.”
Soybean futures for July delivery rose 3.25 cents, or 0.3 percent, to $9.3825 a bushel at 11:16 a.m. on the Chicago Board of Trade. Before today, the price dropped 11 percent this year as Argentina and Brazil, the biggest growers after the U.S., harvested record crops.
Soybean-meal futures for July delivery rose $3.40, or 1.2 percent, to $280.60 for 2,000 pounds (907 kilograms) on the CBOT. Before today, the most-active futures fell 9.4 percent this year.
The soybean crop in the U.S. was valued at $31.8 billion last year, second only to corn at $48.6 billion, government figures show.