Soybeans Climb Above $15 on China Demand, Shrinking U.S. Supply
Soybeans advanced to a six-month high, heading for the best run in more than a year, on signs that demand will increase in China even as U.S. supplies shrink.
Soybeans for July delivery gained as much as 0.6 percent to $15.025 a bushel, the highest for a most-active contract since Nov. 8, on the Chicago Board of Trade and were at $14.9475 by 10:23 a.m. in Singapore. Prices are set to climb for a sixth day, the best streak since March 2012.
China’s soybean imports, the world’s largest, will start increasing sizably from this month onward and jump 17 percent in the next season, according to Oil World. Purchases may climb to 68 million metric tons in the 2013-2014 marketing year that begins Aug. 1 from 58.2 million tons, the Hamburg-based researcher said May 21. U.S. inventories before the next harvest will shrink to 125 million bushels, the smallest since 2004, the U.S. Department of Agriculture estimates.
“It’s an old-crop market that is extremely tight,” Michael Pitts, a commodity sales director at National Australia Bank Ltd., said by phone from Sydney. “China has been a consistent importer over the year and is likely to continue.”
Futures rallied to a record $17.89 a bushel in September as U.S. crops were hurt by the worst drought since the 1930s. Logistical bottlenecks in Brazil supported prices in recent months as shipments to importers including China were delayed. “There is concern about a lack of soybeans in July and August” in the U.S., Oil World said.
Wheat for July delivery gained as much as 0.4 percent to $6.91 a bushel and traded at $6.905. Corn for December delivery, most active by open interest, was little changed at $5.3025 a bushel.
To contact the reporter on this story: Phoebe Sedgman in Melbourne at psedgman2
To contact the editor responsible for this story: James Poole at jpoole4