Investing.com – Soybean futures were up for the first time in five days on Thursday, boosted by concerns over crop conditions in South America and amid speculation that the recent slump in prices will buoy demand from China.
On the Chicago Mercantile Exchange, soybean futures for November delivery traded at USD11.7350 a bushel during European morning trade, gaining 0.8%.
It earlier rose by as much as 1.5% to trade at USD11.8262 a bushel, the highest price since October 3.
Industry weather group Telvent DTN said in a report on Wednesday that drought conditions in Argentina and dry weather in key soybean-growing regions in Brazil was likely to threaten crop yields in the world’s second and third largest soybean producers.
Crop losses in South America could mean increased demand for U.S. supplies, which is both the world’s largest soybean producing nation and the largest exporter of the grain.
Some bargain buying also lent support, after soybean prices plunged to a 12-month low of USD11.5175 a bushel earlier in the week.
Agribusiness financial service provider Rabobank said that the recent drop in prices “plays into the hands of buyers”, adding that China will “relish the recent collapse of prices, given it has been grappling with high domestic demand for soybeans.”
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the U.S. Department of Agriculture.
Soybean prices came off their highs as the U.S. dollar strengthened after the Bank of England implemented a fresh round of monetary easing measures, while the European Central Bank left its benchmark interest rate unchanged.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.41% to trade at 79.75, reversing an earlier loss of as much as 0.32%.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery rose 0.95% to trade at USD6.1113 a bushel, while wheat for December delivery climbed 1.09% to trade at USD6.3200 a bushel.
Later in the day, the U.S. Department of Agriculture was to publish weekly data on U.S. grain exports to gauge the strength of global demand for U.S. supplies.
On the Chicago Mercantile Exchange, soybean futures for November delivery traded at USD11.7350 a bushel during European morning trade, gaining 0.8%.
It earlier rose by as much as 1.5% to trade at USD11.8262 a bushel, the highest price since October 3.
Industry weather group Telvent DTN said in a report on Wednesday that drought conditions in Argentina and dry weather in key soybean-growing regions in Brazil was likely to threaten crop yields in the world’s second and third largest soybean producers.
Crop losses in South America could mean increased demand for U.S. supplies, which is both the world’s largest soybean producing nation and the largest exporter of the grain.
Some bargain buying also lent support, after soybean prices plunged to a 12-month low of USD11.5175 a bushel earlier in the week.
Agribusiness financial service provider Rabobank said that the recent drop in prices “plays into the hands of buyers”, adding that China will “relish the recent collapse of prices, given it has been grappling with high domestic demand for soybeans.”
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the U.S. Department of Agriculture.
Soybean prices came off their highs as the U.S. dollar strengthened after the Bank of England implemented a fresh round of monetary easing measures, while the European Central Bank left its benchmark interest rate unchanged.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.41% to trade at 79.75, reversing an earlier loss of as much as 0.32%.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery rose 0.95% to trade at USD6.1113 a bushel, while wheat for December delivery climbed 1.09% to trade at USD6.3200 a bushel.
Later in the day, the U.S. Department of Agriculture was to publish weekly data on U.S. grain exports to gauge the strength of global demand for U.S. supplies.