Soybeans lead grains higher Thursday

June 8th, 2012

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Category: Oilseeds

(Agriculture.com) – U.S. soy futures closed higher Thursday, boosted by concerns that U.S. soybean inventories could fall lower than expected.

Soybeans for July delivery closed up 41 3/4 cents, or 3.0%, at $14.28 a bushel at the Chicago Board of Trade. November soybeans rose 42 cents to $13.41 1/4 a bushel.

July soybean meal rose $10.90 to $425.50 a short ton, and July soybean oil rose 1.14 cents to 50.39 cents a pound.

Soybean futures rallied earlier this year as reduced output in drought-stricken South America led to expectations for smaller world supplies and greater export demand for U.S. soybeans, including by China. Soybeans then fell sharply in May, largely due to expectations for greater soy plantings in the U.S.

Now, front-month soybeans have rebounded 6.6% from a closing low reached on May 31, as traders have become concerned about dry weather hindering development of the U.S. crop and reducing the potential for farmers to double-crop, or plant soybeans immediately after harvesting wheat.

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