Aug. 28 (Bloomberg) -- Soybeans rose for the second time in three sessions on increased U.S. export sales to China, the world’s biggest buyer and consumer of the oilseed. Corn declined.
China bought 110,000 metric tons for delivery after Sept. 1, the U.S. Department of Agriculture said today. U.S. export sales in the year that starts Sept. 1 have jumped 53 percent to a record 16.8 million tons from a year earlier, USDA data show. China may need to cut imports by 5 million tons for delivery from September to February because U.S. production will fall 12 percent this year, researcher Oil World said today.
“China continues to buy U.S. soybeans,” Gregg Hunt, a market analyst and broker at Archer Financial Services Inc. in Chicago, said in a telephone interview. “For China, it’s pay up or do without. Prices will keep climbing until demand slows.”
Soybean futures for November delivery rose 0.2 percent to close at $17.2225 a bushel at 2 p.m. on the Chicago Board of Trade. Yesterday, the most-active contract reached a record $17.605. Prices fluctuated between gains and losses today, dropping as much as 1 percent.
Corn futures for December delivery slid 0.7 percent to $7.955 a bushel. It was a fifth consecutive drop, the longest slide since June 2011. The grain touched a record $8.49 on Aug. 10, after the government said production would fall 13 percent this year to the lowest since 2008.
Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.
To contact the reporter on this story: Jeff Wilson in Chicago at firstname.lastname@example.org
To contact the editor responsible for this story: Steve Stroth at email@example.com