(Bloomberg) – Soybeans rose in Chicago, extending the biggest weekly gain since August, on signs exports from the U.S. are increasing amid a rebound in Chinese demand. Wheat also increased, trimming a weekly loss.
U.S. exporters sold 164,435 metric tons of soybeans in the week to May 15 for delivery before this marketing year ends Aug. 31, double the amount a week earlier, the U.S. Department of Agriculture said yesterday. China also bought 120,000 tons for delivery after Sept. 1, the USDA said in a separate daily sales report. Soybeans touched an 11-month high yesterday, rebounding after concern earlier this year that feed demand would drop amid outbreaks of bird flu and lower hog prices.
“Soybean prices have been gaining on expectations of rising demand from China after last month’s concerns about bird flu dissipated,” Deutsche Bank analysts including Michael Lewis wrote in an e-mailed report today.
Soybeans for July delivery rose 0.6 percent to $15.2725 a bushel by 5:36 a.m. on the Chicago Board of Trade after climbing as high as $15.3675 yesterday in intraday trading. Futures are set for a 4.2 percent increase this week, the biggest gain since the week-ended Aug. 23.
Since April 1, egg prices in China have surged about 26 percent while hogs jumped 20 percent, according to data from Shanghai JC Intelligence Co. Soybean stockpiles in the U.S., the second-biggest exporter, after Brazil, will drop to 3.53 million tons by the end of the 2013-14 season, a 10-year low, the USDA estimates.
Milling Wheat
Wheat for July delivery climbed 0.5 percent to $6.6225 a bushel in Chicago, trimming a weekly loss to 1.8 percent. Prices touched $6.54 yesterday, the lowest intraday level for a most-active contract since March 12. In Paris, milling wheat for November delivery added 0.4 percent to 198 euros ($270) a ton on Euronext.
Wheat growing areas in the U.S. Great Plains will see rain through May 27, with totals averaging around 2 inches (5.1 centimeters), Commodity Weather Group LLC said in a report yesterday. About 25 percent of Texas and 34 percent of Oklahoma was experiencing exceptional drought as of May 20, expanding from the prior week, the U.S. Drought Monitor reported yesterday.
Corn for July delivery rose 0.5 percent to $4.7925 a bushel in Chicago, paring a weekly loss to 0.9 percent.
