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Soybeans jump on exports, investors

10/04/2012 @ 3:43pm

Soybean futures rose Thursday, buoyed by a government report showing strong export demand for the U.S. crop.

Prices also benefited from traders buying soybeans based on positive technical signals.

Chicago Board of Trade soybeans for November delivery rose 19 3/4 cents, or 1.3%, to $15.51 1/2 a bushel.

Traders were encouraged by a better-than-expected weekly export sales report from the U.S. Department of Agriculture. The USDA reported net export sales of 1.3 million metric tons in the week ended Sept. 27, with China accounting for much of the volume. The sales were above traders' expectations for sales in a range of 700,000 to 900,000 tons, according to a Dow Jones Newswires poll.

Soybeans are starting to recover following sharp losses over the past three weeks that stemmed in part by seasonal harvest pressure and reports of better-than-expected yields in parts of the Farm Belt. The oilseed has fallen 12% from an all-time closing high of $17.71 on Sept. 4.

Sharply oversold conditions based on technical charts triggered renewed buying Thursday by money managers, said Darin Newsom, senior market analyst with Telvent DTN, an agriculture media company in Omaha, Neb.

Fresh buying from end users such as soy processors and global importers also boosted prices, Mr. Newsom added.

Corn and wheat futures ended mixed, after rallying to a lesser degree than soybeans for most of the day. Advances in the markets were fueled by broader-based buying across commodity asset classes amid weakness in the U.S. dollar and ongoing concerns about U.S. and world grain production.

However, as the day drew to a close, investors took profits on the gains on views neither market is seeing sufficient demand to justify higher price levels, analysts said.

December wheat futures ended down 3 3/4 cents, or 0.4%, to $8.69 1/4 a bushel at the Chicago Board of Trade. Kansas City Board of Trade December wheat fell 4 1/4 cents, or 0.5%, to $8.86 3/4 a bushel. MGEX December wheat finished down 3 1/2 cents, or 0.4%, at $9.26 1/4 a bushel.

Corn for December delivery rose 1/4 cent, or 0.03%, to $7.57 a bushel.

-Write to Andrew Johnson Jr. at andrew.johnsonjr@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 04, 2012 15:36 ET (19:36 GMT)
DJ US Soy Futures Climb; Export Demand Spurs Investor Buying->copyright

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