Soybeans hit 11-week high on expected lower stocks
Soybeans rose to an 11-week high on speculation that the U.S. Department of Agriculture will reduce its domestic stockpiles estimate in a report on Tuesday amid increased global demand. Corn and wheat futures also gained.
The USDA will probably forecast inventories on Aug. 31 at 159 million bushels, according to a survey of analysts by The Wall Street Journal. That's down from the government's November forecast of 170 million bushels, but still up from last year's 141 million.
U.S. exporters reported sales of 290,000 tons of soybeans to China, mostly for delivery in the year that started on Sept. 1, the USDA said in a report on Monday. That may have encouraged traders who were short the market, or bet prices would fall, to buy back contracts and exit their positions.
"We were expecting today to be kind of quiet ahead of tomorrow's report but the market was caught surprised that China came in and bought more beans," said Craig Turner, a senior broker at Daniels Trading in Chicago. "Anybody who was short ahead of the report used that as an excuse to get out."
Soybean futures for January delivery rose 17 3/4 cents, or 1.3%, to $13.43 1/4 a bushel, the highest closing price for the front-month contract since Sept. 18.
Corn and wheat prices rose on speculation that the government will lower its forecasts for inventories of both commodities.
Corn stockpiles are expected to be forecast at 1.861 billion bushels, less than the 1.887 million projected in last month's USDA supply-and-demand report, but still more than double last year's 824 million bushels. Wheat inventories will probably be estimated at 553 million bushels, below the 565 million forecast last month, according to market-watchers.
Corn futures for December delivery on the CBOT gained 4 1/2 cents, or 1.1%, to $4.28 1/2 a bushel in Chicago.
Wheat futures for December delivery gained 1 3/4 cents, or 0.3%, to $6.39 a bushel on the CBOT. March futures fell 1/2 cent, or 0.08%, to $6.50 1/2 a bushel.
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(END) Dow Jones Newswires
December 09, 2013 15:18 ET (20:18 GMT)
DJ Soybeans Rise to 11-Week High as Stockpiles Seen Lower -- Update->copyright