Soybeans Rise Most in Three Weeks on U.S. Exports; Grains DropJeff Wilson
Soybean futures rose the most in three weeks after a government report showed increased demand for exports from the U.S., the world’s second-biggest shipper. Corn extended a slump to a three-year low, and wheat declined.
Exporters sold 1.018 million metric tons of soybeans in the week ended Oct. 31, up more than fivefold from a year earlier, U.S. Department of Agriculture data showed today. Sales of soy-based livestock feed rose 48 percent from a year earlier. In a separate report, the agency said China bought 250,000 tons for delivery before Aug. 31.
“Export sales were stronger than expected,” Arlan Suderman, a senior market analyst at Water Street Solutions Inc., said in a telephone interview from Wichita, Kansas. “Demand is improving. China and other Asian customers continue to buy U.S. supplies.”
Soybean futures for January delivery rose 0.9 percent to close at $12.665 a bushel at 1:15 p.m. on the Chicago Board of Trade, the biggest gain for a most-active contract since Oct. 17. The oilseed has dropped 10 percent this year on forecasts for a rebound in U.S. and world production.
Corn futures for December delivery declined 0.2 percent to $4.205 a bushel. Earlier, the grain touched $4.19, the lowest since Aug. 25, 2010. The price dropped for the seventh straight session, the longest slump since July 1.
This year, corn has plunged 40 percent, the most among 24 raw materials in the Standard & Poor’s GSCI Spot Index. U.S. farmers may collect a record 14.03 billion bushels, 1.3 percent more than the government’s September prediction and up 30 percent from 2012, according to a Bloomberg survey of 36 analysts.
Tomorrow, the USDA will update its forecasts on global and domestic crops.
Wheat futures for December delivery fell less than 0.1 percent to $6.53 a bushel. The price has dropped 16 percent this year.