Demand gains send soybeans higher Monday
Soybean and corn futures gained in choppy trading Monday on signs of strong global demand for the commodities. Wheat declined.
U.S. exporters sold 183,000 metric tons of soybeans and 119,888 tons of corn to unknown overseas buyers, the U.S. Department of Agriculture said in a report Monday. Shippers in the week that ended June 23 sold 703,400 metric tons of soybeans to overseas buyers for delivery in the marketing year through August, up 13% from the prior four-week average, the USDA said in a report Friday.
"An overnight increase in export interest [gave] futures some support today," said Karl Setzer, a grain analyst at risk-management firm MaxYield Cooperative in West Bend, Iowa.
Soybean futures for March delivery gained 3 cents, or 0.2%, to $12.87 3/4 a bushel on the Chicago Board of Trade.
Commitments from buyers can be canceled at any time, and China has in the past switched purchases from the U.S. to Brazil as the harvest accelerates in the South American country, the world's biggest soybean exporter. Until cancellations are confirmed, however, some investors will continue to buy contracts because of continued demand, analysts said.
Corn also gained after the USDA said in a report Monday that the government inspected 29.8 million bushels of the grain for export, topping analyst expectations and last week's 20.9 million bushels.
Corn futures for March delivery rose 2 1/4 cents, or 0.5%, to $4.31 3/4 a bushel in Chicago trading.
Wheat futures declined, reversing gains, after prices earlier rose on concerns that freezing weather in the U.S. Midwest and Plains would hurt plants. Global production is expected to rise almost 9% this year with Canada seen producing a record crop and Australia forecast to have its third-largest harvest ever.
Wheat futures for March delivery fell 1 3/4 cents, or 0.3%, to $5.63 1/2 a bushel on the CBOT.
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(END) Dow Jones Newswires
January 27, 2014 15:54 ET (20:54 GMT)
DJ Soybeans Gain on Signs of Strong Demand for U.S. Supplies -- Update->copyright