soybean futures charts

soybean futures

May 22nd, 2014

Soybean futures climbed to the highest level in more than 11 months in Chicago on speculation that demand for livestock feed will increase in China amid rebounding prices for eggs and pigs. Corn also gained.

Chinese processors last week ordered about 600,000 metric tons of soybeans for shipment after Sept. 1, according to a Bloomberg News survey. Since April 1, Chinese egg prices surged 26 percent while hogs increased 20 percent, according to data from Shanghai JC Intelligence Co. As bird flu and slumping pork prices curbed demand for soybean meal used in feed earlier this year, a U.S. industry group said last month that China was at risk of defaulting on some soybean imports.

“The market concern for Chinese demand has diminished, with improving conditions evident,” Australia & New Zealand Banking Group Ltd. analysts including Paul Deane wrote in a report today. “Chinese domestic prices for pork, soybean meal, corn and wheat have all rallied in the last month.”

Soybeans for July delivery rose 1.4 percent to $15.26 a bushel at 6:28 a.m. on the Chicago Board of Trade, the global benchmark. Earlier, the price reached $15.2775, the highest for a most-active contract since June 6. Futures have rallied 18 percent this year.

U.S. exporters sold 27.6 million tons of soybeans to China for delivery before the 2013-14 marketing year ends Aug. 31, and an additional 4.9 million tons to be delivered in the 2014-15 season, U.S. Department of Agriculture data show. The agency is scheduled to update its weekly export sales report later today.

Corn for July delivery rose 0.5 percent to $4.7675 a bushel in Chicago, while wheat for the same delivery month added 0.2 percent to $6.655 a bushel. Milling wheat for November delivery fell 0.1 percent in Paris to 198.50 euros ($271.35) a ton on Euronext.

- Ranjeetha Pakiam in Kuala Lumpur and Whitney McFerron in London at Bloomberg.