Soybeans Rise on Signs Demand Improving; Corn Gains; Wheat Falls
Soybean futures gained the most in a week after an industry report showed increased demand from makers of animal feed and cooking oil. Corn rose for a second day, while wheat declined.
Processors in October used 153.536 million bushels of soybeans, up 8.8 percent from a year earlier and the most since January 2010, the National Oilseed Processors Association said today. Exports of animal feed doubled from a year earlier, the trade group said. The U.S. Department of Agriculture reported sales of 120,000 metric tons of soybeans to China and 40,000 tons of soybean oil to unknown destinations.
“The crush report today was bullish, adding to a lack of evidence of usage rationing,” Anne Frick, the senior oilseed analyst for Jefferies Bache LLC in New York, said in a note to clients. Consumption would need to drop by at least 279 million bushels from year-earlier levels during the next 10 months to maintain adequate reserves before the 2013 harvest, she said.
Soybean futures for January delivery rose 0.8 percent to close at $14.19 a bushel at 2 p.m. on the Chicago Board of Trade, the biggest gain since Nov. 6. The oilseed yesterday touched $13.9125, the lowest since June, after reaching a record $17.89 in September.
Corn futures for March delivery gained 0.4 percent to $7.2925 a bushel on the CBOT. Prices still are down 14 percent from a record $8.49 on Aug. 10 as demand slowed.
Wheat futures for March delivery dropped 0.2 percent to $8.64 a bushel in Chicago, capping a four-session decline for the contract of 5.7 percent.
The U.S. was the largest exporter of all three commodities last year. Corn is the biggest crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show. Wheat is the fourth-largest at $14.4 billion, behind hay.
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org