Friday, 5 October 2012

Soybeans Advance as Demand for U.S. Exports Surges, Led by China

By Luzi Ann Javier - Oct 5, 2012
Bloomberg
Soybeans climbed for a third day as U.S. export sales jumped, boosted by purchases from China.

The contract for delivery in November rose as much as 0.5 percent to $15.5875 a bushel on the Chicago Board of Trade. Futures were at $15.5375 at 2:10 p.m. Singapore time, trimming the weekly loss to 3 percent, the third such decline.

Sales soared 62 percent to 1.297 million metric tons in the week to Sept. 27, with China buying about 79 percent, the U.S. Department of Agriculture said yesterday. That’s the highest weekly sales for delivery in the current marketing year since November 2010, according to USDA data. The country is set to be the biggest shipper after Brazil this year.

“Buyers took advantage of the recent slide in prices,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said in a report today.
“Oilseed prices were also supported by Stats Canada which cut canola production.”

Output of canola will fall 7.8 percent from last year to 13.4 million tons, Statistics Canada said yesterday.

Corn for delivery in December fell 0.2 percent to $7.5575 a bushel, while wheat for delivery in the same month was little changed at $8.69 a bushel.

Exporters in the U.S. sold 326,917 tons of corn in the week to Sept. 27 for delivery in this marketing year, up from 368 tons a week earlier, the USDA said.

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