Soybeans Rise as Increasing Chinese Demand Eats Into U.S. Inventories
Soybeans rose for the ninth straight session on speculation that Chinese imports will reduce stockpiles in the U.S., the world’s largest producer and exporter.
The U.S. sold 284,000 metric tons to China for delivery after Sept. 1, the Department of Agriculture said today. Chinese processors may have bought at least 1.2 million tons of U.S. soybeans last week, the China National Grain & Oils Information Center said. Soybean-oil futures in China, the world’s biggest consumer, surged to almost a two-year high.
‘Chinese demand remains strong, and that will support the market,” said Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana.
Soybean futures for November delivery rose 5.25 cents, or 0.5 percent, to $10.39 a bushel at 10:12 a.m. on the Chicago Board of Trade, after dropping as much as 0.4 percent. The price gained 7 percent the prior eight sessions.
On Aug. 5, the most-active contract touched $10.49, the highest price since Jan. 7, after a drought prompted Russia to ban grain exports, increasing demand for animal feed made from soybeans.
The U.S. soybean crop was valued at $31.8 billion last year, second only to corn at $48.6 billion, government figures show.
To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net
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