(Reuters) – May 9 U.S. soybean futures rose for a second session on Monday as strong demand from top importer China and concerns over crop damage in Argentina buoyed the market.
Wheat gained more ground although the rise was capped by prospects of higher production of the hard red winter wheat crop in the United States.
The Chicago Board Of Trade most-active soybean contract rose 0.4 percent to $10.38-1/2 a bushel by 0228 GMT, having firmed 2.2 percent on Friday.
Wheat gained 0.3 percent to $4.65-1/4 a bushel and corn added 0.5 percent to $3.79-1/4 a bushel.
Soybeans are drawing support on expectations of strong demand for U.S. supplies on the back of crop damage in Argentina following unseasonal rains at harvest time.
China’s soybean imports climbed 33 percent in April from a year ago, setting a monthly record amid strong demand for soymeal and soyoil.
The country bought 7.07 million tonnes of soybeans in April, up 15.9 percent as compared with the previous month, preliminary figures issued by the General Administration of Customs showed on Sunday. This is a record for April imports.
“Commercials are buying back positions in the soybean market which is supporting prices,” said Kaname Gokon at brokerage Okato Shoji in Tokyo.
“We are looking at very strong demand as China is restocking hogs herd which means more demand for soymeal to feed hogs. There are concerns about Argentina’s crop, so nearby situation is getting bit tighter.”
Brazilian farmers are taking advantage of a favorable combination of rising global soy prices and a weak local currency to make record volumes of forward sales for the 2016-17 crop.
According to analyst Informa Economics FNP, 16 percent to 17 percent of the crop that will be planted from September has already been sold, compared to just 4.7 percent of the previous crop sold at this time last year.
Commodity funds were net buyers of CBOT soybean, corn and wheat futures contracts on Friday.
Trader estimates of net fund buying in soybeans ranged from 9,000 to 12,000 contracts. They were net buyers of 5,000 to 6,000 contracts in corn and zero to 2,000 contracts in wheat.
Wheat crop prospects in Kansas are well above average as rains last month should more than offset the impact of an earlier drought, scouts on an annual tour said on Thursday.
