Exports Fuel Soybean Price Blowup Monday
Corn and soybeans surged to higher closing prices Monday, led by a soybean pit that was sharply buoyed first by export demand and also by a weather forecast that all of a sudden looks less than ideal for that crop going into its most critical summer time frame, the month of August.
Nearby soybean futures closed 24 1/4 cents higher at $11.07 3/4 per bushel, while nearby corn futures rode beans' coattails to close 5 cents higher at $3.76 3/4. Wheat futures didn't share in the good fortune; the nearby contract wound up 3 1/4 cents lower at $5.34 3/4 per bushel based largely on good harvest conditions in the northern Plains.
Monday's soybean jump was largely fueled by a USDA Foreign Ag Service announcement that China has agreed to buy 486,000 metric tons of U.S. soybeans. An announcement at the same time Monday that the U.S. has sold 101,000 metric tons of wheat to Nigeria wasn't enough to keep wheat futures in the black.