Soybeans Rebound on Signs of Rising Demand for Record U.S. Crop

November 25th, 2014

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Category: Grains, Oilseeds

Beans_Corn_Soy_Lentils450x2(Bloomberg) – Soybeans advanced for a third session in four on signs that demand for supplies from the U.S. is increasing as farmers in the top producer near completion of a record harvest.

U.S. exporters sold 235,000 metric tons of soybeans to China for delivery by Aug. 31, the U.S. Department of Agriculture said yesterday. Export inspections in the week ended Nov. 20 were 52 percent higher than a year earlier, the agency said. About 97 percent of the record 3.958 billion bushel crop was harvested as of Nov. 23, USDA data show.

Soybeans for January delivery rose 0.5 percent to $10.3875 a bushel on the Chicago Board of Trade by 5:32 a.m., after prices retreated 0.5 percent yesterday. Soybean meal for January delivery rose 0.9 percent to $365.90 a short ton.

“The U.S. has been booking soybean exports at a rapid pace,” Commonwealth Bank of Australia said in a note today. “Observers are now guessing what proportion of the bookings will be realized given a large amount are in a window when South American producers will have plenty of beans available.”

Production in Brazil, the second-biggest grower, may climb 8.4 percent to 94 million tons in 2014-15, the USDA estimates. Soybeans in Brazil’s Mato Grosso and Goias should benefit from scattered showers and mostly near-normal temperatures in the next seven to 10 days, forecaster DTN said yesterday.

Corn for March delivery fell 0.2 percent to $3.795 a bushel, while wheat for delivery in the same month declined 0.4 percent to $5.4725 a bushel. Milling wheat for January delivery traded on Euronext in Paris fell 0.4 percent to 178 euros ($221.34) a ton.

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