Soybeans rose, capping a third straight monthly climb, on speculation that reduced production in South America will boost demand for U.S. supplies from China, the biggest consumer and importer.
U.S. exporters sold 220,000 metric tons to China for delivery after Sept. 1, the Department of Agriculture said today in a statement. As of April 19, China purchased 6.446 million tons for delivery during that period, up 9.1 percent from a year earlier, USDA data show. Damage cut output in Argentina and Brazil by 11 percent this year, the agency said April 10.
“China’s demand is showing few signs of slowing,” Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago, said in a telephone interview. “South American production is falling, and the U.S. is the only supplier until Brazil and Argentina start harvesting crops again next March.”
Soybean futures for July delivery added 0.8 percent to close at $15.055 a bushel at 1:15 p.m. on the Chicago Board of Trade, the fifth straight increase. Earlier, the price touched $15.07, the highest since July 2008. The most-active contract rose 7.3 percent this month. Three months of gains is the longest advance since January 2011.
The U.S. soybean crop was valued at $35.8 billion last year, the second-largest behind corn, government figures show.